Re:Vermont will cover $10K of expenses for people who move t...
by leetcrew on Thursday May 31, 2018 @12:30PM
(#17197665)
not exactly, only about 15 states pay more federal tax than they receive back, and they're not all the ones you would expect. [0]
still, this is a valid point. the net flow of cash is certainly an important thing to consider, but i do think it is worth making the distinction between federal and state taxes. i happen to live in a (very blue) state that receives more federal dollars than we pay in taxes. if i lived in a creditor state, i would certainly not be thrilled with the situation, but i would accept that the tax is raised (at least ostensibly) for the national interest and may not be spent evenly among the states. state taxes, on the other hand, are raised exclusively for the benefit of that state. we can argue about how to allocate federal dollars most fairly, but i really feel that state taxes should not be directly subsidized by citizens of other states.
still, this is a valid point. the net flow of cash is certainly an important thing to consider, but i do think it is worth making the distinction between federal and state taxes. i happen to live in a (very blue) state that receives more federal dollars than we pay in taxes. if i lived in a creditor state, i would certainly not be thrilled with the situation, but i would accept that the tax is raised (at least ostensibly) for the national interest and may not be spent evenly among the states. state taxes, on the other hand, are raised exclusively for the benefit of that state. we can argue about how to allocate federal dollars most fairly, but i really feel that state taxes should not be directly subsidized by citizens of other states.
[0] https://www.theatlantic.com/business/archive/2014/05/which-s...