[lbo-talk] balance of payments

Max Sawicky sawicky at verizon.net
Fri Apr 9 14:19:05 PDT 2010


If there is a continuous movement of workers to other states in their retirement years, then the apparent long-run pattern will be misleading. It will always look like New York is a net payor and Florida is a net receiver (which could be true, but not necessarily to the extent shown).

On Fri, Apr 9, 2010 at 5:09 PM, Sean Andrews <cultstud76 at gmail.com> wrote:
> All I can say is that it isn't a one-year thing, IIRC. They do it
> every year and compare receipts to payments. Though this refers to an
> individual year, the overarching point is that there is more of a
> pattern of spending v. payments along these lines year to year.  The
> fact that this is a pattern over a long term should, I would think,
> mitigate some of the problems you mention with the argument, but I
> don't know enough about it to say...
> s
>
> On Fri, Apr 9, 2010 at 16:00, Max Sawicky <sawicky at verizon.net> wrote:
>> Those numbers are problematic.  Tax data are attributed to the address
>> on the form, but that is not necessarily the filer's home address.  It
>> could be his/her tax preparer.  On the spending side, a contractor
>> operating in a state where the project is need not live in the state,
>> nor need its shareholders if the company is public.  The workers in a
>> state need not live there either.
>>
>> There is also the time disconnect.  Somebody paying payroll tax for SS
>> & Medicare could retire to another state and get benefits there.
>>
>> Oh, and this info is from the Tax Foundation, and they suck.
>> I haven't read their study -- go ahead and sue me -- if somebody
>> has and can flag a mistake in what I said, feel free to respond.
>>
>>
>> On Fri, Apr 9, 2010 at 4:46 PM, Doug Henwood <dhenwood at panix.com> wrote:
>>> James Heartfield was skeptical when I claimed that the most Republican,
>>> anti-government states in the U.S. got more in federal aid than they paid to
>>> Washington in taxes, and vice versa. Here's a map making my case:
>>>
>>> http://www.thefourthbranch.com/2010/04/government-spending/
>>>
>>> Doug
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>>>
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