Blue States To Red States: ‘You’re Welcome’
Former Labor Secretary Robert Reich thinks red state governors and legislators complain too much about federal handouts, considering they’re being subsidized by blue state taxpayers.
Click here for reuse options!Republican legislatures and governors in 20 states have refused to expand Medicaid under Obamacare (even though the federal government picks up the whole tab for the first 3 years and 90% thereafter) because, they say, they don’t want to be dependent on federal handouts.
But according to the Tax Foundation, every one of these 20 red states already gets back from the federal government each year more than their citizens pay into it in federal taxes (these “handouts” come in the form of agricultural subsidies, military spending, infrastructure, pork projects, retirement benefits, and food stamps), while blue states with Democratic governors and predominately Democratic legislatures pay more to the federal government than they get back. In other words, these 20 red states already live on handouts from blue states. As a blue-state taxpayer, I don’t mind subsidizing red states, but if their governors and legislatures continue to complain about federal handouts I may have second thoughts. How about you?
Copyright 2014 Liberaland
By: Dave
Dave is the webmaster of StrangerAmerica.com, a website devoted to the greatness that is Dick Cheney.
He is also the creator of RonnieReagan.com, a site devoted to a man considered by some to have been one of the better B-grade actors to portray a U.S. president.
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30 responses to Blue States To Red States: ‘You’re Welcome’
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Um Cara August 16th, 2014 at 10:44
That’s not what the data from the tax foundation shows, unless I’m misinterpreting it. I hear folks make this claim all.the.time – but their own data doesn’t back it up.
http://taxfoundation.org/sites/taxfoundation.org/files/docs/ftsbs-timeseries-20071016.swf
Texas is a bit below parity, paying a bit more than we receive. Don’t get me wrong, I think refusing the medicare funds is one of the most horrible things our state government has done to its citizens & I don’t think it shameful at all for Vermont to be getting extra cash from Texas if they need it – we are all Americans. I just don’t think the headline or article is accurate according to the data it references.
MarcoZandrini August 16th, 2014 at 10:56
You are correct about Texas. The fed taxes paid roughly equal the fed handouts. However, a large portion of the handouts are for military bases and service personnel.
Dwendt44 August 16th, 2014 at 12:03
And other federal agencies. NASA, Border Patrol, etc…
Um Cara August 16th, 2014 at 15:13
Sounds interesting – which study are you referring to that ranks the states in that way?
fancypants August 17th, 2014 at 01:19
I would say all of the red states benefit from tax handouts and could easily have obamacare if only the bible thumpers would get out of the way ?
Um Cara August 16th, 2014 at 10:44
That’s not what the data from the tax foundation shows, unless I’m misinterpreting it. I hear folks make this claim all.the.time – but their own data doesn’t back it up.
http://taxfoundation.org/sites/taxfoundation.org/files/docs/ftsbs-timeseries-20071016.swf
Texas is a bit below parity, paying a bit more than we receive. Don’t get me wrong, I think refusing the medicare funds is one of the most horrible things our state government has done to its citizens & I don’t think it shameful at all for Vermont to be getting extra cash from Texas if they need it – we are all Americans. I just don’t think the headline or article is accurate according to the data it references.
MarcoZandrini August 16th, 2014 at 10:56
You are correct about Texas. The fed taxes paid roughly equal the fed handouts. However, a large portion of the handouts are for military bases and service personnel.
Dwendt44 August 16th, 2014 at 12:03
And other federal agencies. NASA, Border Patrol, etc…
Um Cara August 16th, 2014 at 15:13
Sounds interesting – which study are you referring to that ranks the states in that way?
fancypants August 17th, 2014 at 01:19
I would say all of the red states benefit from tax handouts and could easily have obamacare if only the bible thumpers would get out of the way ?
Eric Trommater August 16th, 2014 at 10:45
If you haven’t seen Reich’s documentary Inequality for All on Netflix yet it is a must see!
https://www.netflix.com/WiMovie/70267834?trkid=200250783
mea_mark August 16th, 2014 at 11:22
Nothing I have seen explains the situation we are in, better than “Inequality for All”. It explains what happened and gives plenty of direction on where we should go. It is by far the easiest way to be informed.
Eric Trommater August 16th, 2014 at 10:45
If you haven’t seen Reich’s documentary Inequality for All on Netflix yet it is a must see!
https://www.netflix.com/WiMovie/70267834?trkid=200250783
mea_mark August 16th, 2014 at 11:22
Nothing I have seen explains the situation we are in, better than “Inequality for All”. It explains what happened and gives plenty of direction on where we should go. It is by far the easiest way to be informed.
Abby Normal August 16th, 2014 at 11:00
Red states take our money and then call us names. That’s gratitude.
Abby Normal August 16th, 2014 at 11:00
Red states take our money and then call us names. That’s gratitude.
labman57 August 16th, 2014 at 12:01
Republican legislators do not oppose massive amounts of federal spending, per se — they simply cannot stomach spending on programs that conflict with their political ideology, nor allocating federal funds to provide financial assistance to demographic groups which traditionally vote for Democratic candidates.
Carla Akins August 16th, 2014 at 12:17
Very well stated, but once in office they represent a group of constituents from a variety of parties – and many of these people is in real need. I believe it to be the responsibility of all public office holders to address the needs of all – equally. It’s either compromise or come up with a better plan, but obstruction is never an answer.
labman57 August 16th, 2014 at 12:01
Republican legislators do not oppose massive amounts of federal spending, per se — they simply cannot stomach spending on programs that conflict with their political ideology, nor allocating federal funds to provide financial assistance to demographic groups which traditionally vote for Democratic candidates.
Carla Akins August 16th, 2014 at 12:17
Very well stated, but once in office they represent a group of constituents from a variety of parties – and many of these people is in real need. I believe it to be the responsibility of all public office holders to address the needs of all – equally. It’s either compromise or come up with a better plan, but obstruction is never an answer.
Jake August 16th, 2014 at 12:09
One simple way to redress the balance – TAX the CHURCHES!
Carla Akins August 16th, 2014 at 12:12
I’m sensing a pattern here….
Jake August 16th, 2014 at 12:45
It’s my Benghazi.
Carla Akins August 16th, 2014 at 13:15
Holy shit. That’s commitment.
Carla Akins August 16th, 2014 at 12:12
I’m sensing a pattern here….
Carla Akins August 16th, 2014 at 13:15
Holy shit. That’s commitment.
Red Eye Robot August 16th, 2014 at 20:55
The left doesn’t like “From each according to his ability to each according to his need” anymore? Socialism sounds like a great thing until it’s your ox being gored. There is an easy way to remedy this inequity, Cut taxes. Cut government spending. Eliminate wealth transfer schemes. California pays more to the federal govt. because they have more wealthy people as a percentage of the population.
President Obama exacerbated this inequity for states like California when he insisted on raising the top marginal tax rate to 39.6% from 35%.
Red Eye Robot August 16th, 2014 at 20:55
The left doesn’t like “From each according to his ability to each according to his need” anymore? Socialism sounds like a great thing until it’s your ox being gored. There is an easy way to remedy this inequity, Cut taxes. Cut government spending. Eliminate wealth transfer schemes. California pays more to the federal govt. because they have more wealthy people as a percentage of the population.
President Obama exacerbated this inequity for states like California when he insisted on raising the top marginal tax rate to 39.6% from 35%.
SteveD August 17th, 2014 at 03:32
How does the Federal Government actually spend?
When they write you a check, and when the check is deposited, they change the numbers in your bank account upward by the amount of the check. This doesn’t use anything-not tax money or ‘borrowed’ dollars.
They just change numbers.
Former Federal Reserve Chairman Ben Bernanke made this exact point when Congress asked him where the money for the banks was coming from. He told them the Fed just changes the numbers in their Fed bank accounts.
So this means, operationally, Federal spending is in no case dependent on tax revenues (or borrowing).
SteveD August 17th, 2014 at 03:32
How does the Federal Government actually spend?
When they write you a check, and when the check is deposited, they change the numbers in your bank account upward by the amount of the check. This doesn’t use anything-not tax money or ‘borrowed’ dollars.
They just change numbers.
Former Federal Reserve Chairman Ben Bernanke made this exact point when Congress asked him where the money for the banks was coming from. He told them the Fed just changes the numbers in their Fed bank accounts.
So this means, operationally, Federal spending is in no case dependent on tax revenues (or borrowing).