It's no secret:
The federal budget is expanding faster than tax revenues, a trend that's been fueled by the rapid growth of entitlement programs and exacerbated by the recession. As a recent
New York Times article
documents, even as fiscally conservative lawmakers complain about
deficit spending, their constituents don't want to give up the Social
Security checks, Medicare benefits, and earned income tax credits that
provide a safety net for the struggling middle class.
This gap between political perception and fiscal reality is also
reflected in the distribution of tax dollars at the state level: Most
politically "red" states are financially in the red when it comes to how
much money they receive from Washington compared with what their
residents pay in taxes.
A look at 2010 Census and IRS data reveals that the 50 states and the
District of Columbia, on average, received $1.29 in federal spending
for every federal tax dollar they paid. That means that some states are
getting a lot more than they put in, and vice versa. The states that
contributed more in taxes than they got back in spending were more
likely to have voted for Obama in 2008 and were more likely to be
largely urban. (There are some clear exceptions: For instance, New
Mexico, a rural, Democratic state, gets more federal money per tax
dollar than any other state.)
These three interactive maps break down the split between the
spenders and lenders. Click on any state for more detailed data,
including each state's per capita ratio of spending received versus
taxes paid and where it ranked when the
Tax Foundation ran the 2005 numbers.
Red states were more likely to get a bigger cut of federal spending.
Of the 22 states that went to McCain in 2008, 86 percent received more
federal spending than they paid in taxes in 2010. In contrast, 55
percent of the states that went to Obama received more federal spending
than they paid in taxes. Republican states, on average, received $1.46
in federal spending for every tax dollar paid; Democratic states, on
average, received $1.16.

This red-blue split may be partly explained by the difference between
urban and rural states. Red states are more likely to be rural, and
rural states were more likely to receive more federal spending than they
paid in taxes in 2010. Among predominantly rural states, 81 percent
received more federal spending than they paid in taxes. In contrast, 44
percent of urban states received more federal spending than they paid in
taxes. Rural states, on average, received $1.40 in federal spending for
every tax dollar paid; urban states, on average, received $1.10.
(Rural states are defined as states whose urban population rate is below
the national average of 79 percent.)
Note: Data has been adjusted to be deficit neutral using the method described by the Tax Foundation in its earlier analysis of federal spending versus federal taxes paid.
Sources: IRS (state tax data), Tax Foundation (2005 rank of spending vs. taxes), US Census (federal spending, urban/rural)
Front page image: Wikimedia Commons