Federal Taxing and Spending Benefit Some States, Leave Others Paying Bill
Some states feast at the expense of others, according to the Tax Foundation's latest annual analysis of federal taxing and spending patterns.
Using newly released Fiscal Year 2005 spending data from the Census Bureau's annual Consolidated Federal Funds Report, the Tax Foundation compared the federal tax burden in each state with the amount of federal spending in each state. The result is a ranking of which states got the best deal in 2005 from Uncle Sam's tax and spending policies.
During fiscal 2005, taxpayers in New Mexico benefited the most from the give-and-take with Uncle Sam, receiving $2.03 in federal outlays for every $1.00 the state's taxpayers sent to Washington. This first-place finish is nothing new in New Mexico which has perched atop this list for many years. Other big winners in 2005 were Mississippi ($2.02), Alaska ($1.84), Louisiana ($1.78), and West Virginia ($1.76).
2005's biggest loser was New Jersey, which received 61 cents in outlays per tax dollar. Other low ranking states included Nevada (65 cents), Connecticut (69 cents), New Hampshire (71 cents), and Minnesota (72 cents).
Florida ranked 34th and got $0.97 for every $1.00 the state's taxpayers sent to Washington.