The issue I take with some analysis on rich vs poor states is the methods used to correlate the data. In addition to what you presented in you link, there are other factors that have to be taken into consideration. Real world effects on states such as illegal immigration, transportation and infrastructure costs demand more federal dollars. And the method used by your web site to arrive at their findings do not account for these real world problems. Here is how they arrive at the percentages and accountability:
Return on Taxes Paid to the Federal Government Weight: 1 (Federal Funding in $ / Federal Income Taxes in $) This metric illustrates how many dollars in federal funding state taxpayers receive for every one dollar in federal income taxes they pay. We have excluded from the Federal Funding the Loans/Guarantees component because it does not represent permanent transfers from the Federal Government to a state.
Federal Funding as a Percentage of State Revenue Weight: 1 (Federal Funding in $ / State Revenue in $) * 100 This metric shows how much of a states annual revenue, and theoretically its spending, is provided by the federal government. Without this money, revenue would have to be found elsewhere perhaps via tax hikes or else key state services would suffer.
Number of Federal Employees Per Capita Weight: 0.5
(No. Federal Workers / No. State Residents) This metric speaks to the federal governments role as a nationwide employer, indicating the percentage of a states workforce that owes its very livelihood to Washington.
Read those points again. It is easy to skew the figures and the analysis because all states are not equal and do not share the same ratios.
Also, for some states, Indian reservations, military bases, highway funds, national parks, non-productive federal land, and large populations of retirees also play an important role. Its also important to note that states with higher populations like California and New York will tend to get more federal grants. Federal aid for natural disasters are also excluded, such as forest fires, drought, mud slides and earthquakes.
One can not paint an accurate picture of an entire state's financial status within the confinements of limited data, many other issues must be factored in. Its both unfair and inaccurate to paint the citizens of any one state as moochers or freeloaders based on this data, as several factors play heavily into the circumstances individuals face across the country.
For you, an updated analysis of states, but I caution you to use the expanded considerations when reading the data, follow this link:
http://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/#dependency-and-state-taxesKHH1 wrote:
No I am talking about YOU finding info that proves that blue states are no longer funding red states like they were in 2012 according to the information I posted that penny said was outdated. Do you always play dumb or are you that far out of sync?