States the most & least dependent on Federal Government

Dependent states
Click for large interactive map

The extent to which the average American’s tax burden would vary based on his state of residence represents a significant point of differentiation between state economies. But it’s only once piece of the puzzle.

What if, for example, a particular state can afford not to tax its residents at high rates because it’s receiving disproportionately more funding from the federal government than states with apparently oppressive tax codes? That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.

The idea of the American freeloader burst into the public consciousness when #47percent started trending on Twitter. And while the notion is senselessly insulting to millions of hardworking Americans, it is true that some states receive a far higher return on their federal income tax investment than others.

Just how pronounced is this disparity, and to what extent does it alter our perception of state and local tax rates around the country? WalletHub sought to answer those questions by comparing the 50 states and the District of Columbia in terms of three key metrics: 1) Return on Taxes Paid to the Federal Government; 2) Federal Funding as a Percentage of State Revenue; and 3) Number of Federal Employees Per Capita.

Folks living in New Mexico know even without looking where we fit into this picture puzzle. Yup, tied with Mississippi at the bottom of the heap.

Our Republican governor is often spoken off as the hope for moderate Republicans as President or Vice-President in 2016. Right now, our education system battles with Mississippi for the honors of being the worst, unemployment is still increasing while the rest of the country seem to be growing a few jobs and here we are at the bottom.

Thanks, Barry Ritholtz

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