Article written by guest writer Rin Mitchell
What’s the Latest Development?
According to the U.S. Census Bureau’s Consolidated Federal Funds report, the most populated states receive the most money from the federal government. The report shows how much money the government put into each state for various programs, grants and public employee salaries by state. “In 2010, eight of the 10 states with the highest population received the most. California, the most populous state in the country, receives the largest share — more than a third of a trillion dollars.” The information is interesting because many would think that the states that need the most help would receive the most money. “However, when accounting for population and the amount states pay in federal taxes, the breakdown looks very different.”I t is measured by the “highest federal spending per capita,” which the majority of the 10 states had along with a “higher median household income than the United States average.” So, the government paid out more to the wealthier states because they spent the most per capita in income tax.
What’s the Big Idea?
The U.S. government bases its decision on which states to give the most money to by the amount the state spends per capita in income tax, and not which states are the most in need. “A review of the data shows that some very large programs, including defense spending, Medicare and Medicaid, Social Security, and farm subsidies, had major effects on how much money each state received, to the extent that individuals get far more per person than in other states.”