2017’s Most & Least Federally Dependent States

[truth_seeker]

2017’s Most & Least Federally Dependent States

Mar 21, 2017  |  John S Kiernan, Senior Writer & Editor

The extent to which the average American’s tax burden varies based on his or her state of residence represents a significant point of differentiation among state economies. But it’s only one piece of the puzzle.

What if, for example, a particular state can afford not to tax its residents at high rates because it receives disproportionately more funding from the federal government than states with apparently oppressive tax codes? That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.

The idea of the American freeloader burst into the public consciousness when #47percent started trending on Twitter in 2012. And while the notion is senselessly insulting to millions of hardworking Americans, it is true that some states receive a far higher return on their federal income-tax contributions than others.

Just how pronounced is this disparity? And to what extent does it alter our perception of state and local tax rates around the country? WalletHub sought to answer those questions by comparing the 50 states in terms of three key metrics. Read on for our findings, expert commentary and a detailed methodology.

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https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

[DB]

That's crap.

The states with high cost of living also are the ones that pushed for very progressive federal income taxes. So high cost of living states pay more into the federal pool due to their own stupidity. And now people want to complain because other states didn't stupidly do that and now it isn't fair...

[Sanguine]

The rankings look very different if you sort by "‘State Residents’ Dependency’ Rank", which is federal funding divided by income tax collected.  That seems to me to be the relevant number.

[LauraTXNM]

The rankings look very different if you sort by "‘State Residents’ Dependency’ Rank", which is federal funding divided by income tax collected.  That seems to me to be the relevant number.

@Sanguine I think aim missing your point.  Looking at the Dependency graphs, CA is low tax and low dependence, low taxes and high GDP.  Can you give me an example of a state you're looking at?

[Sanguine]

@Sanguine I think aim missing your point.  Looking at the Dependency graphs, CA is low tax and low dependence, low taxes and high GDP.  Can you give me an example of a state you're looking at?

Let me see if this is readable:

Rank   State   Total Score   â€˜State Residents’ Dependency’ Rank    â€˜State Government’s Dependency’ Rank
(1 = Most Dependent)            
32   North Dakota   40.46   1   50
6   South Carolina   68.17   2   31
3   New Mexico   73.88   3   17
4   Alabama   72.45   4   14
5   West Virginia   68.97   5   15
1   Kentucky   76.16   6   5
2   Mississippi   75.59   7   1
10   Indiana   59.18   7   23
29   Hawaii   41.63   9   46
23   Alaska   45.81   10   40

[LauraTXNM]

@Sanguine, thanks, that matches up with the other charts.  I thought you were making a different point.