Saturday, August 17, 2019 11:12:28 PM
Most & Least Federally Dependent States
Mar 19, 2019 | John S Kiernan, Senior Writer & Editor
https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/
One big point of difference among state economies is the tax burden of the average citizen. This number varies greatly. But what are the reasons behind why some states tax their residents more or less?
If a state can afford not to tax its residents at high rates, there are multiple explanations. One is that their economic policies are sound and the state economy is doing well. But another is that the state gets disproportionately more funding from the federal government than states with harsher tax codes.
Americans have looked at federal assistance programs with growing scrutiny. According to a 2018 Rasmussen report, 61% of American adults think there are too many people receiving government financial aid. On the other hand, only 9% think not enough people are receiving funds. Regardless of overall trends, though, it is true that some states receive a far higher return on their federal income-tax contributions than others.
Most Federally Dependent States
Rank (1 = Most Dependent) State Total Score
1 New Mexico 85.81 2 3
2 Mississippi 81.46 7 1
3 Kentucky 78.76 6 5
4 West Virginia 72.34 4 12
5 Alabama 71.65 5 11
6 Arizona 67.03 11 4
7 Alaska 64.30 8 9
8 Montana 63.88 15 6
9 South Carolina 61.31 3 33
10 Indiana 59.74 9 14
11 Louisiana 58.11 27 2
12 Tennessee 52.21 21 7
Mar 19, 2019 | John S Kiernan, Senior Writer & Editor
https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/
One big point of difference among state economies is the tax burden of the average citizen. This number varies greatly. But what are the reasons behind why some states tax their residents more or less?
If a state can afford not to tax its residents at high rates, there are multiple explanations. One is that their economic policies are sound and the state economy is doing well. But another is that the state gets disproportionately more funding from the federal government than states with harsher tax codes.
Americans have looked at federal assistance programs with growing scrutiny. According to a 2018 Rasmussen report, 61% of American adults think there are too many people receiving government financial aid. On the other hand, only 9% think not enough people are receiving funds. Regardless of overall trends, though, it is true that some states receive a far higher return on their federal income-tax contributions than others.
Most Federally Dependent States
Rank (1 = Most Dependent) State Total Score
1 New Mexico 85.81 2 3
2 Mississippi 81.46 7 1
3 Kentucky 78.76 6 5
4 West Virginia 72.34 4 12
5 Alabama 71.65 5 11
6 Arizona 67.03 11 4
7 Alaska 64.30 8 9
8 Montana 63.88 15 6
9 South Carolina 61.31 3 33
10 Indiana 59.74 9 14
11 Louisiana 58.11 27 2
12 Tennessee 52.21 21 7
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