[lbo-talk] Givers and Takers

Yoshie Furuhashi furuhashi.1 at osu.edu
Sat Jan 31 07:41:23 PST 2004


***** The New York Times January 30, 2004 OP-ED CONTRIBUTOR Givers and Takers By DANIEL H. PINK WASHINGTON

. . . Each year, the Tax Foundation, a nonprofit research group, crunches numbers from the Census Bureau to produce an intriguing figure: how much each state receives in federal spending for every dollar it pays in federal taxes.

For example, according to the most recent data, for every dollar the average North Dakotan paid in federal taxes, he received $2.07 in federal benefits. But while someone in Fargo was doubling his money, his counterpart in neighboring Minnesota was being shortchanged. For every dollar Minnesotans sent to Washington, only 77 cents in federal spending flowed back to the state.

Using the Tax Foundation's analysis, it's possible to group the 50 states into two categories: Givers and Takers. Giver states get back less than a dollar in spending for every dollar they contribute to federal coffers. Taker states pocket more than a dollar for every tax dollar they send to Washington. Thirty-three states are Takers; 16 are Givers. (One state, Indiana, has a perfect one-to-one ratio of taxes paid and spending received. As seat of the federal government, the District of Columbia has no choice but to be a Taker, and is therefore not comparable to the 50 states in this regard.)

. . . You might expect that in the 2000 presidential election, Republicans, the party of low taxes and limited government, would have carried the Giver states - while Democrats, the party of wild spending and wooly bureaucracy, would have appealed to the Taker states. But it was the reverse. George W. Bush was the candidate of the Taker states. Al Gore was the candidate of the Giver states.

Consider:

78 percent of Mr. Bush's electoral votes came from Taker states.

76 percent of Mr. Gore's electoral votes came from Giver states.

Of the 33 Taker states, Mr. Bush carried 25.

Of the 16 Giver states, Mr. Gore carried 12.

Juxtaposing these maps provides a new perspective on the political landscape. . . . Republicans seem to have become the new welfare party - their constituents live off tax dollars paid by people who vote Democratic. Of course, not all federal spending is wasteful. But Republicans are having their pork and eating it too. Voters in red states like Idaho, Montana and Wyoming are some of the country's fiercest critics of government, yet they're also among the biggest recipients of federal largess. Meanwhile, Democratic voters in the coastal blue states - the ones who are often portrayed as shiftless moochers - are left to carry the load.

For President Bush, this invisible income redistribution system is a boon. He can encourage his supporters to see themselves as Givers, yet reward them with federal spending in excess of their contribution - and send the bill to those who voted for his opponent. It's shrewd politics. . . .

Daniel H. Pink, the author of "Free Agent Nation," was the chief speechwriter for Vice President Al Gore from 1995 to 1997.

<http://www.nytimes.com/2004/01/30/opinion/30PINK.html> ***** -- Yoshie

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