Tax Cuts and the Left
Yesterday, I followed up an entry with a suggestion about how to sell tax-cuts to the left. I pointed out that states with large urban centers lean to the Democratic party but are also the ones with lowest ratio of federal receipts to federal taxes paid. I am tracking down the sources right now, and I'm not done with a full analysis yet, but here's a place to start
. I am checking the census sources now, so I present that as a start for now.
If some states are beneficiaries, receiving more than they send in, then naturally some states must be benefactors – those states where so much is collected in federal taxes that any federal largesse they receive is overwhelmed. With an extremely high FY 2000 federal tax burden per capita (164 percent of the national average), even above-average federal spending (102 percent of the national average) couldn't prevent Connecticut from having the lowest federal spending-to-tax ratio (0.62). The 0.62 ratio means that Connecticut only receives 62¢ in federal spending for every dollar its taxpayers send to Washington and is therefore the nation's biggest loser from federal fiscal operations. Other states that had low federal spending-to-tax ratios in FY 2000 are New Jersey (66¢), Nevada (69¢), New Hampshire (71¢), and Illinois (74¢).
Nevada and New Hampshire are red states, the rest are blue. More on this later.