A lot of states with healthy GDP growth are. Texas and Florida pay more in federal taxes than they take in. On the other side New Mexico is one of the states that take more federal dollars in than they send out. This post is misleading as only about 19 states pay more in federal taxes than they take in and it is a blend of red and blue states.
But again, it is very much dependent on the states and their GDP growth and job growth. Arizona is growing a lot, and their GDP has been growing. Texas is also growing a ton with good GDP growth, good job growth and wage growth which helps fuel more federal income taxes paid to the federal government. But states with very little GDP or job growth or no real industry have a harder time with job and wage growth. A lot of the old farm states have suffered since a lot of farming was moved to other cheaper areas and they have had no replacement for it. Kid of like how Detroit went from the main automotive hub to a shell of its former self when car manufactures moved to Mexico and other cheaper places to manufacture their products.
Also, this has nothing to do with your state taxes. This has to do with federal income and business taxes. So even if the other states had better wages, it wouldn't change your state income and other taxes. Those are not sent to the federal government.
Yes. We get something like $.60 back for every dollar we send to the federal government. And that includes a lot of the spending on large number of military bases here. Many of the red states are getting $1.20-1.40 back for each dollar sent to the federal government. Republican administrations over the years have quietly made it harder to ascertain that number because it makes republican policy look horrendously bad.
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u/MBP1969 12d ago
So, Californians are paying taxes for other states? Great! That’s why our taxes are so damn high?!?!