Routinely we read reports about how many states receive more in federal funding than they contribute while others have the inverse. In many cases a state receiving more than it contributes can be explained by its housing military bases, being home to a large portion of our oil reserves, or the state falling prey to some unfortunate natural disaster. In the case of Kentucky none of these are true. Since 1981 Kentucky has never contributed an equal amount to what they receive. In fact, the trend has been that we are increasingly giving them more every year.
In 1981 KY got $1.06 for every $1 they paid into the Federal government. By 1991 it was up to $1.28. By 2001 $1.38. In 2021 they are expected to get $2.61 on every $1 they contribute.
So this said …. WHY ARE WE SUPPORTING THESE DEADBEATS?
Even worse, why do we allow their Senator (McConnell) to brazenly abuse everyone else?
It is time to tell Kentucky enough is enough. Pay your fair share deadbeats!!!
When these figures are calculated they attribute expenditures to:
Direct Payments to individuals such as OASDI and Medicare.
Grants to state and local governments.
Government Contracts.
Wages.
Most of federal expenditures is for Direct Payments.
There is not a large variation in direct payments since most of it is based on a formula. Utah does fare particularly poor in this category since the federal government does not payments to Mormon children.
On a tax v. payments basis, New York may fair poorly because the employment taxes paid by workers in New York goes to fund their retirement in Florida. Remember these seniors have a choice between being sent to a nursing home to die of COVID 19 under Killer Cuomo, or live out their Golden Years under the benevolent De Santis regime.
There is a huge variation in per capita payments for contracts because these are typically attributed to where a corporation is headquartered. In the case of Kentucky, the big contract is one with Humana (headquartered in Lousville) to provide healthcare to service members in the Armed Forces throughout the Southern US.
The payment goes to Louisville, but the services are rendered at military bases in Texas, Georgia, Alabama, Florida, Louisiana, etc. Ironically, Humana's contract does not cover Fort Campbell.
The contracts for the other two regions are held by contractors in larger states (California and Minnesota) where their per capita effect is smaller.
Arguably all military spending should be attributed to the home state of service members. Spending on a jet engine for a pilot from Nebraska is simply paying for his equipment. It doesn't matter where GE is headquartered or where the engine is manufactured.
Defense_Income_Share = Service_Members_State/Service_Members_USA * DOD Budget
Defense_Spending_Share = Population_State/Population_USA * DOD Budget
Common Defense % = DOD/Federal Budget.
Common Defense taxes = Income_Tax * Common Defense %.
Income_Tax non defense = Income Tax - Common Defense Taxes.
Adjusted Income: Income_Tax_non_defense (for state) + Defense_Income_Share
Adjusted Expenditures: Non-defense-spending + Defense_Spending_Share
