Publications
Federal Taxes Paid vs. Spending Received by State
States send federal taxes to Washington and receive federal spending in return. However, some states benefit more from federal taxing and spending policies than others. Some "beneficiary" states receive a positive return from Uncle Sam, making other states "donors" who pick up the tab. The most important factor determining whether a state is a net beneficiary is per capita income. States with wealthier residents pay higher federal taxes per capita thanks to the progressive structure of the income tax. Other factors include whether states have powerful Members of Congress, the number of federal employees present in a state, and the number of residents receiving Social Security, Medicare and other federal entitlements.
Additional questions about federal taxes paid vs. spending received by state? Contact Bill Ahern at (202) 464-5101.
Publications from The Tax Foundation
- K-12 Spending More Reliant on Federal Government Since No Child Left Behind Act, by Gerald Prante, July 30, 2007
- Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts, by Gerald Prante and Andrew Chamberlain, March 22, 2007
- Federal Tax Burdens and Expenditures by State, by Curtis S. Dubay, March 16, 2006
- Federal Tax Burdens and Expenditures by State (2004 edition), by Sumeet Sagoo, December 1, 2004
- Federal Tax Burdens in States and Metropolitan Areas, by TF Staff, April 1, 1974
- Federal Grants: The Need for Reform, by TF Staff, December 1, 1972
- Allocating the Federal Tax Burden Among the States, by TF Staff, April 1, 1957
- Federal Economic and Social Programs, Fiscal 1956, by TF Staff, April 1, 1955