Which States are Most Dependent on the Feds?

By WalletHub.com, Special for USDR.

On the heels of its Best& Worst States for Taxpayers Report, the personal finance social network WalletHub, today released analysis that illustrates which states are most and least dependent on the federal government.
WalletHub compared the 50 states as well as the District of Columbia in terms of three primary metrics: 1) Return on Taxes Paid to the Federal Government; 2) Federal Funding as a Percentage of State Revenue; 3) Number of Federal Employees Per Capita.

You can find a brief overview of our findings below. For the full WalletHub Federal Dependency Report, please visit:http://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

  • There is a 34.4% correlation between a state’s federal dependency and its tax rates. In other words, the more dependent a state is on the federal government, the less likely it is to charge high tax rates.
  • Red States, with an average dependency ranking of 33.5, are altogether more reliant on federal funding than Blue States, which ranked 19.2 on average (the smaller the ranking, the less dependent a state is).
  • There is a 56% correlation between a state’s federal dependency and its per-capita GDP. That means the least wealthy states tend to be those receiving the most federal support.
  • Eight states have below average tax rates & federal dependency: DE, NV, CO, MA, UT, WA, AK, IN.
  • Nine states have above average tax rates & federal dependency: VA, HI, GA, ID, OR, VT, MD, KY, ME.

LEAST Dependent States MOST Dependent States
1.  Delaware 42. Arizona
2.  Illinois T-43.  South Dakota
3.  Minnesota T-43.  West Virgina
4.  New Jersey 45.  Tennessee
5.  Connecticut T-46.  Montana
6.  Kansas T-46.  Maine
7.  California 48.  Louisiana
8.  Nevada 49.  Alabama
9.  Massachusettes T-50. New  Mexico
10.  Colorado T-50.  Missississippi

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.

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