No taxation without (some decent) representation

The focus on Federal taxes as a Robin Hood-type redistribution tends to focus on economic classes – is the middle class a winner or a loser, etc. Except, Representatives don’t represent classes. They represent states.  And, looking at the redistributive effects of taxes on a state by state basis, the Republican party comes across as just a machine in directing benefits their way.

If we look at net Federal spend (spend less taxes) by state, Republican states get a net benefit of $284B, while Democratic states are net losers by $216B.  The top 5 winning states include one Democratic state – Maryland – and 4 Republican states.  This reverses for the bottom 5 states, with only one Republican state – Ohio – represented, along with 4 Democratic states. Closer to home, California weighs in dismally short at $29B.  It will get worse as some of the relatively more punitive measures in the new tax legislation hits residents in Democratic states the hardest.  Specifically, on being able to deduct state taxes on Federal tax returns.

net federal benefit.png

Maybe it’s no surprise Republican party colors are red.  Democratic states need better representation

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