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US study confirms deep red states rely heavily on wealth redistribution from blue states

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States that voted Democrat in 2016 generally rely less on federal funding than Republican states, according to a study by WalletHub.

The analysis looked at the return on taxes paid to the federal government, the share of federal jobs, and federal funding as a share of state revenue.

Thirteen out of the top 15 states found to be most dependent on the federal government voted for President Donald Trump in the 2016 presidential election. Ten out of the 15 least dependent states voted for Democratic nominee Hillary Clinton.

‘No ranking like this is ever going to be perfect’

“Obviously, no ranking like this is ever going to be perfect,” Stan Veuger, an economist at the American Enterprise Institute, told Yahoo Finance. “Some things you can definitely say, like where the states that have the highest per capita income or pay the most in taxes.”

But “it’s not really true across the board,” Veuger said. “Virginia is a blue state and obviously has a lot of federal contractors and a lot of federal money … It obviously relies heavily on what the federal government does.”

According to WalletHub’s analysis, Virginia receives the second-highest amount of federal contracts while ranking federal funding as a share of state revenue. And given that WalletHub weighted federal funding four times more than share of federal jobs, Virginia is one of the least-dependent states on the federal government.

‘Poor states receive more federal funding through Medicaid’

WalletHub analyst Jill Gonzalez explained that “federal funding as a percentage of state revenue was calculated as states’ intergovernmental revenue from the federal government divided by the states’ general revenue..”

https://finance.yahoo.com/news/states-dependent-federal-government-180735773.html