What's up with South Carolina 5X Federal Spending to Revenue ratio?

[presence]

10 years ago 2X was pretty extreme. What's with some of these states taking in 3X 4X 5X 7.88X of their revenue?


http://en.wikipedia.org/wiki/Federal_taxation_and_spending_by_state

http://fcnl.org/pdfs/issues/budget/South_Carolina-_Field.pdf

 

[TheCount]

Retirees.

 

[presence]

Retirees.

SC ranks #32 certainly not 5X more than other states in terms of % over 65. Most states are 10- 15% retiree age, here's the upper half:

http://www.prb.org/Publications/Articles/2003/WhichUSStatesAretheOldest.aspx

 

[Zippyjuan]

32% of their budget funding comes from the federal government - $6.8 billion worth (or slightly higher than their own tax revenues)

 

[LibForestPaul]

Yellow Lamborghini, Red Flags: South Carolina Pension's Reckless Gamble May Bankrupt State

http://www.forbes.com/sites/edwardsiedle/2013/12/18/yellow-lamborghini-red-flags-south-carolina-pensions-reckless-gamble-may-bankrupt-state/

 

[thoughtomator]

"What's up" is that the 5x number is wrong.

 

[P3ter_Griffin]

Generally this is because of the MIC and military bases. I'm really surprised to see North Dakota anywhere close to the top with the oil boom going on. Here is a graphic on (I believe) 2005:

eta: holy frack the image didn't fit the page. link instead. http://visualizingeconomics.com/blog/2010/02/17/federal-taxes-paidreceived-for-each-state

Ironically the red states are generally the worst offenders.

 

[juleswin]

Generally this is because of the MIC and military bases. I'm really surprised to see North Dakota anywhere close to the top with the oil boom going on. Here is a graphic on (I believe) 2005:

eta: holy frack the image didn't fit the page. link instead. http://visualizingeconomics.com/blog/2010/02/17/federal-taxes-paidreceived-for-each-state

Ironically the red states are generally the worst offenders.

You beat me to it, whenever you see such a big imbalance its usually because a state with low population and low economic output has a military foot print in it. Maybe the number would still show a deficit when you take out all the military bases, ports etc etc bit it wouldn't come close to 5-1

 

[roho76]

Little brown kids ain't gonna kill themselves.

 

[thoughtomator]

Little brown kids ain't gonna kill themselves.

someone tell Chicago

 

[RSLudlum]

SC has a good many military bases including Paris Island. Just here in Charleston, we are surrounded by the Air Force Base, Naval Weapons Station, Dept of Homeland Security Training Facility, SPAWAR Atlantic, and the Charleston Naval Consolidated Brig. Of course, these are coupled with loads of military contractors, of which Boeing has recently been added to the list. The number of veterans living in SC is the largest of any state per capita.

Yes, there is a ton of federal money coming into SC while wages are generally low therefore less revenue going out in the form of taxes. I have no idea on the amount of federal money being doled out for funding social programs here in SC, but I bet it's quite a bit considering the unemployment rate was one of the highest.

 

[RSLudlum]

Duplicate

 

[loveshiscountry]

from 1981-2000 received between $1.19-$1.28
2001-2005 between $1.30-$1.36
http://taxfoundation.org/article/federal-taxes-paid-vs-federal-spending-received-state-1981-2005
2006-2007 dont know
2008 $1.31
2009 started the big jump between 2.43-7.88

So what happened in the last 5 years there?

 

[P3ter_Griffin]

from 1981-2000 received between $1.19-$1.28
2001-2005 between $1.30-$1.36
http://taxfoundation.org/article/federal-taxes-paid-vs-federal-spending-received-state-1981-2005
2006-2007 dont know
2008 $1.31
2009 started the big jump between 2.43-7.88

So what happened in the last 5 years there?

I haven't looked at any numbers to back this up, but my guess would be:

1. Financial crash- lower tax revenues
2. Obammer- higher tax expenditures
3. A military budget that never shrinks- higher tax expenditures


Federal deficit in 2008- $458 Billion
Federal deficit in 2009- $1,413 Billion

 

[presence]

from 1981-2000 received between $1.19-$1.28
2001-2005 between $1.30-$1.36
http://taxfoundation.org/article/federal-taxes-paid-vs-federal-spending-received-state-1981-2005
2006-2007 dont know
2008 $1.31
2009 started the big jump between 2.43-7.88

So what happened in the last 5 years there?

yeah that's what I was seeing... it seems to have come out of no where

 

[56ktarget]

Gotta love republican fiscal responsibility.

 

[klamath]

I will say that in some cases federal money coming into a state in NOT welcomed but is forced. Ask the people in the western states if they welcome the USFS, BLM and other federal agencies that own the majority of the land and stifle local economic growth, if they like that federal money?