Minnesota sends way more in taxes to Washington than it gets in return

A report in The Economist shows that Minnesota is one of the big net losers when it comes to federal taxes paid versus federal spending in the state.

Looking at the years 1990-2009, relative to size, only Delaware has a higher percentage of federal taxes vs. federal spending, compared with its GDP, the report says.

During that 20-year period, Minnesota sent $1.016 trillion to Washington in taxes, while federal spending here was $503 billion. The difference is 199 percent of the state’s GDP. Delaware’s number was 206 percent.

Twenty states were net losers; the other 30 states, and Puerto Rico, were net winners. Puerto Rico had the largest disparity, with a difference of 291 percent of its GDP. New Mexico was second, at 261 percent.

Comments (3)

  1. Submitted by Clayton Haapala on 08/02/2011 - 10:57 am.

    I’d like to see a third dimension of data that reflects the level of state income tax levied in the states. I believe it would show a negative imbalance, i.e. “red” largely maps to states that won’t tax themselves to help themselves.

  2. Submitted by Gerald Greupner on 08/02/2011 - 11:30 am.

    And those poor slugs don’t like socialism. They wouldn’t exist without it.

  3. Submitted by Dennis Tester on 08/03/2011 - 03:46 pm.

    If The Economist had bothered to do even a little bit of analysis they would have discovered that the states who get more federal dollars than they pay in are states with large military installations and/or have defense contractor facilities. That translates into huge payrolls and capital equipment spending.

    If you discount the state national guard and Duluth’s U.S. coast guard contingent, Minnesota has neither.

    Loathing the military has economic consequences.

Leave a Reply