California residents and businesses contribute $83 billion More than the state receives in federal spending. Why is there a gap?
Expenses:
- State with high poverty rates, large populations of seniors, major federal facilities (such as military bases), large numbers of federal contracts, and/or the presence of significant federal employees can receive a disproportionate share of federal funds. These factors contribute to relatively high federal spending (per capita) in many other states compared to California.
Revenue:
- State, like California, with wealthier residents and higher per capita incomes, account for a disproportionate share of federal revenues due to progressive federal tax systems. In fact, California ranks in the top 10 of all states in terms of federal tax per capita.
These points help explain why there is a $83 billion gap in California. However, it is worth exploring where California’s tax contributions are headed by the catastrophic cuts in the Washington, D.C. policy agenda.
If Congress adopts huge funding cuts suggestionthe gap between what Californians pay in federal taxes and what California receives in federal spending. Probably grows big.
This is because Californians continue to contribute disproportionately to federal revenue. Even an extended tax cut – Meanwhile, our condition is back Even less Of these dollars after deep reductions in healthcare, food aid, and other important services (to help pay for tax cuts).
As a result, state policymakers will be forced to cut back on support for Medi-Cal and other critical state programs, as it is nearly impossible to fill the state’s dollars with deep federal funding holes.
California is making a significant contribution to its people thanks to the creativity, vitality and hard work of around 40 million people from diverse backgrounds who call Golden State their home.
Federal taxes, including those paid by Californians, should be used to strengthen important public services and help all people achieve their objectives, rather than avoiding businesses and wealthy people pay an equitable share of federal taxes.
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