Pa. middle of pack on federal government dependency
Out of the 50 states and Washington, D.C., Pennsylvania ranks 23rd in terms of dependence on the federal government, according to personal finance social network WalletHub.
The study released today comes after WalletHub looked at the best and worst states to be a taxpayer. But the amount of taxes paid by an individual in a particular state tells only part of the story, the group said in the report.
“What if, for example, a particular state can afford not to tax its residents at high rates because it’s receiving disproportionately more funding from the federal government than states with apparently oppressive tax codes?” the report states. “That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.”
Based on the new research, WalletHub found that red states are more dependent on the federal government than blue states.
The study looks at federal impact in three ways: The amount of federal taxes paid vs. the amount federal funding received; the percent of state revenue that is federal funding; and the number of federal employees per capita.
With that in mind, the best state in the union is Delaware, which receives 50 cents for every dollar it pays in federal taxes. Federal funding is 25.37 percent of its state revenue. It has 6.17 federal employees per capita.
Pennsylvania is near the middle of the pack. For every dollar the commonwealth pays in federal taxes, it receives $1.31 in federal funding, WalletHub reported. Federal funding as a percentage of state revenue is 30.91 percent. And the number of federal employees per capita is 7.87.
The bottom of the list is a tie between New Mexico and Mississippi. New Mexico gets $2.83 for every federal tax dollar it pays. Its state revenue is 37.9 percent federal funds. It has 15.22 federal workers per capita. Mississippi gets $3.07 for every federal tax dollar. Federal funding is 45.84 percent of its state revenue. There are 8.67 federal workers per capita.