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by array_key_first 242 days ago
Those states have a much larger GDP, allowing them to actually afford those things.

The reality is California gives much, much more to the federal government than it takes. The same is not true for a lot of other states.

2 comments

I think wording is important here. California doesn't give anything to the federal government. So, I'll try my best to correct it.

Because of high salaries and population, the people of the state of California pay more in federal income taxes than the state receives as federal subsidies.

Perhaps same end result, but the framing is important. California isn't some saint who donates money to the govt.

Of course they're not a saint, but they're not hurting for money because they're the 4th largest GDP. In the world.
California is also huge and populous. It's not like there is anything special about California that makes it have a high GDP, other than its size and the great weather which attracts a lot of people and businesses to there. I would have to look it up, but I suspect that every state pays more to the Federal government than they get. There's no free lunch.

To my original point, most people and businesses are not flocking to California to be taxed to hell for some welfare programs or whatever. Businesses would move in a heartbeat away from that overtaxed and overregulated state if they could. But since most taxes are federal and can't be avoided by moving to the Midwest or something, they might as well pay a little more to be in a marginally better or more prestigious location.

> I would have to look it up, but I suspect that every state pays more to the Federal government than they get.

No state pays more to the Federal government than it gets. States don't pay federal taxes, but receive federal funds.

I'm not talking about the government itself lol. I mean the people and businesses in each state collectively, obviously. Even with the huge national debt and budget deficit, I think most states on net contribute more in taxes than they get back. That's the entire point of taxes, otherwise it would be called a gift or something instead. The federal government could not pay out more than it takes in indefinitely to the entire country without just running the printing press to pay the difference. That is what they do, in fact, but clearly they aren't printing everything they spend.