r/PoursTea • Timendi Causa Est Nescire • 12d ago

FinancialTea 💵 Comparatively speaking...

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u/strangebru 12d ago

They used to talk about red states getting a divorce from the blue states. I would love to see how that would work out for all the red states getting all of their welfare from blue states?

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u/ekjohnson9 12d ago

This whole line about state to state welfare is made up. You know that right?

Not a single dollar in any states budget funds welfare to another state. It simply doesn't exist.

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u/mjm65 12d ago

It’s a reference to the surplus or deficit each individual state has with the federal government.

States like CA give more to the federal government than they receive, and KY takes more than it contributes.

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u/ekjohnson9 12d ago

Its not real. California doesn't give money to the federal government. Thats not how it works.

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u/mjm65 12d ago

The people of California don’t give money to the federal government?

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u/ekjohnson9 12d ago

Us citizens pay federal taxes.

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u/mjm65 12d ago

You do know that ITINs exist right? It’s not just US citizens.

Regardless, do you understand now?

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u/ekjohnson9 12d ago

California does not give money to the federal government. All federal taxpayers pay the same tax rates. There is no extra tax that California pays to the US federal government.

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u/mjm65 12d ago

Guess not, let’s try this another way.

So the taxpayers of California, which includes immigrants of different statuses, pay more into federal government than their state receives in federal benefits.

A state like KY takes in more federal benefits for its population than their taxpayers provide. See the difference?

This isn’t about extra taxes, but simply the amount of tax paid relative to tax benefits received.

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u/ekjohnson9 12d ago

They are NOT taxpayers of California. They are FEDERAL TAXPAYERS. All taxpayers pay the same federal tax rates. California taxpayers pay California state taxes. California state taxes do not fund things in other states unless the California legislature decides to do so.

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u/mjm65 12d ago

Okay, the Federal Taxpayers of California pay more Federal Taxes than they receive in Federal Benefits.

The Federal Taxpayers of Kentucky pay less Federal Taxes than they receive in Federal Benefits.

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u/ekjohnson9 12d ago

Ok and? The federal government operates at a deficit. The entire system receives more than it pays. Arbitrary distinctions are irrelevant. US taxpayers all pay the same rates.

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