Study: New Mexico Most Federally Dependent State

WALLETHUB News:

A WalletHub study reveals that New Mexico is the most federally dependent state.

In order to identify which states most and least depend on the federal government, WalletHub analyzed the 50 U.S. states across four key metrics, including:

  • the return on taxes paid to the federal government;
  • federal funding as a percentage of state revenue;
  • the number of federal employees per capita; and
  • the number of civilian non-defense federal employees per capita.

How Federally Dependent Is New Mexico? (1=Least, 25 =Avg.): 

  • 46th – Highest Return on Federal Income Tax
  • 42nd – Lowest Independent Revenue Percentage
  • 45th – Number of Federal Employees per Capita
  • 48th – Number of Civilian Non-Defense Federal Employees per Capita

For the full report, visit: http://wallethub.com/edu/best-states-to-be-rich-poor-from-a-tax-perspective/11257/

The extent to which the average American’s tax burden varies based on his or her state of residence represents a significant point of differentiation between state economies. But it’s only one piece of the puzzle.

What if, for example, a particular state can afford not to tax its residents at high rates because it receives disproportionately more funding from the federal government than states with apparently oppressive tax codes? That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.

The idea of the American freeloader burst into the public consciousness when #47percent started trending on Twitter. And while the notion is senselessly insulting to millions of hardworking Americans, it is true that some states receive a far higher return on their federal income tax contributions than others.

Just how pronounced is this disparity, and to what extent does it alter our perception of state and local tax rates around the country? WalletHub sought to answer those questions by comparing the 50 states in terms of four key metrics. Our findings, as well as expert commentary and a detailed methodology, can be found below:

1

New Jersey

$0.48
(4)

26.87%
(10)

0.00382
(5)

0.00178
(2)

2

Delaware

$0.31
(1)

25.61%
(7)

0.00768
(17)

0.00194
(3)

3

Illinois

$0.45
(3)

26.41%
(8)

0.00550
(14)

0.00272
(11)

4

Minnesota

$0.54
(7)

26.88%
(11)

0.00353
(4)

0.00295
(16)

5

Kansas

$0.54
(6)

25.22%
(6)

0.01460
(37)

0.00342
(25)

6

California

$0.68
(13)

26.44%
(9)

0.00886
(24)

0.00279
(12)

7

Connecticut

$1.04
(30)

23.43%
(4)

0.00442
(8)

0.00175
(1)

8

Massachusetts

$0.74
(16)

29.68%
(17)

0.00490
(11)

0.00335
(22)

9

Nebraska

$0.41
(2)

32.71%
(24)

0.00917
(26)

0.00356
(26)

10

Ohio

$0.51
(5)

34.64%
(34)

0.00513
(12)

0.00231
(6)

11

New Hampshire

$0.81
(21)

30.71%
(20)

0.00441
(7)

0.00283
(14)

12

Iowa

$0.85
(24)

32.33%
(22)

0.00304
(2)

0.00246
(10)

13

Arkansas

$0.62
(10)

33.07%
(25)

0.00681
(16)

0.00359
(27)

14

Colorado

$0.64
(11)

28.14%
(14)

0.01489
(38)

0.00537
(40)

15

Utah

$0.66
(12)

29.06%
(16)

0.01166
(33)

0.00526
(39)

T-16

Michigan

$0.89
(27)

33.14%
(26)

0.00326
(3)

0.00205
(4)

T-16

Nevada

$0.86
(25)

27.01%
(12)

0.00866
(22)

0.00364
(30)

18

Wisconsin

$1.79
(41)

28.59%
(15)

0.00296
(1)

0.00236
(7)

19

Washington

$0.75
(17)

28.12%
(13)

0.01756
(44)

0.00401
(31)

20

New York

$0.58
(9)

43.39%
(49)

0.00469
(9)

0.00286
(15)

21

Rhode Island

$0.75
(18)

34.18%
(31)

0.01033
(30)

0.00280
(13)

T-22

Alaska

$0.96
(28)

22.43%
(3)

0.04829
(49)

0.00987
(49)

T-22

Pennsylvania

$1.41
(37)

30.70%
(19)

0.00544
(13)

0.00332
(21)

24

Texas

$0.79
(19)

33.28%
(29)

0.01033
(29)

0.00361
(29)

25

Virginia

$1.27
(34)

24.21%
(5)

0.03402
(48)

0.00663
(41)

26

Hawaii

$1.46
(38)

21.54%
(2)

0.05437
(50)

0.00446
(35)

27

Oregon

$0.85
(23)

35.05%
(36)

0.00553
(15)

0.00441
(34)

28

Oklahoma

$0.72
(15)

34.42%
(32)

0.01592
(42)

0.00411
(32)

29

Indiana

$1.81
(42)

33.64%
(30)

0.00390
(6)

0.00213
(5)

30

North Carolina

$0.88
(26)

33.15%
(27)

0.01639
(43)

0.00237
(8)

31

Vermont

$1.06
(31)

33.22%
(28)

0.00783
(19)

0.00679
(43)

32

Florida

$2.02
(44)

31.96%
(21)

0.00805
(20)

0.00312
(18)

T-33

Idaho

$1.17
(32)

34.62%
(33)

0.00780
(18)

0.00453
(36)

T-33

Maryland

$1.02
(29)

29.69%
(18)

0.02787
(47)

0.01519
(50)

35

North Dakota

$3.83
(49)

19.51%
(1)

0.01945
(46)

0.00668
(42)

36

Wyoming

$0.55
(8)

39.11%
(44)

0.01568
(41)

0.00818
(45)

37

Georgia

$0.69
(14)

38.08%
(43)

0.01526
(39)

0.00432
(33)

38

Missouri

$0.83
(22)

39.37%
(45)

0.00930
(27)

0.00512
(38)

39

Tennessee

$1.30
(35)

39.78%
(46)

0.00478
(10)

0.00337
(23)

40

South Carolina

$5.38
(50)

32.50%
(23)

0.01274
(34)

0.00242
(9)

41

Maine

$1.58
(40)

35.42%
(38)

0.00873
(23)

0.00304
(17)

42

South Dakota

$0.80
(20)

39.78%
(47)

0.01442
(36)

0.00869
(46)

43

Louisiana

$1.37
(36)

42.21%
(48)

0.00840
(21)

0.00315
(19)

44

Arizona

$1.47
(39)

36.26%
(39)

0.00934
(28)

0.00495
(37)

45

West Virginia

$1.91
(43)

34.91%
(35)

0.00891
(25)

0.00766
(44)

46

Montana

$1.24
(33)

37.49%
(41)

0.01351
(35)

0.00874
(47)

47

Alabama

$2.46
(48)

36.64%
(40)

0.01036
(31)

0.00319
(20)

48

Kentucky

$2.18
(45)

35.26%
(37)

0.01538
(40)

0.00361
(28)

49

Mississippi

$2.34
(47)

43.68%
(50)

0.01061
(32)

0.00341
(24)

50

New Mexico

$2.19
(46)

37.89%
(42)

0.01850
(45)

0.00903
(48)
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