Last year the Federal government's spending was more than $6 trillion, and it has already surpassed $2 trillion this year. The government primarily earns revenue through taxes (individual income, social security and medicare, corporate income, excise, estate/gift) and a variety of other sources like customs duties and income related fees. Each US state offers its own local tax system and nine states don't impose one.
To determine which states rely on the most federal tax revenue, SmartAsset crunched the federal government's numbers on different tax types, classified as gross receipts, and looked at where they were going. Here's what their analysis of the 2021 data shows.
Key Takeaways:
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The American elite AKA the top one-percent earners in the country contributed nearly half (42 percent) of the nation's income tax revenue, of which California's high-rollers led with 16.13 percent of the national income tax paid.
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Only New Mexico received a higher share of the federal government revenue than its income tax collections, whereas the biggest disparity between federal tax contributions and assistance received was faced by Minnesota taxpayers, who contributed around $6 in tax payments for every dollar received in support.
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Taxpayers in West Virginia, Alaska, Mississippi, Montana, Hawaii, Vermont, Louisiana, Alabama, Wyoming and Maine were all paying $1 or less in state taxes for every dollar received back from the federal share.
via SmartAsset.
