Jersey Makes, Washington Takes

As if you didn't know it already, New Jersey gets a poor return on its tax dollars.

Here's a brief AP item on our perennial predicament, as found in this morning's Courier News --

Wealthy N.J. gets a poor return on U.S. tax dollars

By STEPHEN OHLEMACHER
THE ASSOCIATED PRESS

The federal government's system of taxing and spending works out well for people in states such as New Mexico, Mississippi and West Virginia.

Not so well for those in Delaware, Minnesota and New Jersey.

New Mexico received $3.10 in federal spending for every tax dollar the state sent to Washington in 2005 — more than any other state — according to an Associated Press analysis of new federal data.

Delaware fared the worst, receiving just 42 cents for every tax dollar sent to Washington. It was followed closely by Minnesota, which got 46 cents, and New Jersey, 57 cents.

The Census Bureau released its annual report on 2005 spending by the federal government Tuesday.

The AP's analysis shows that wealthy states pay more than poor ones, and blue states subsidize red states.

High-income states such as New Jersey, Connecticut and Massachusetts paid more in taxes than they received in federal spending, while low-income states including Mississippi, West Virginia and Alabama got a much higher return for their tax dollars.

"I don't think the tax code should be used to redistribute wealth around the country," said Scott Hodge, president of the Tax Foundation, a Washington research group. "It should simply be a tool to pay for government programs."

Why not redistribute wealth? asked James Horney, director of federal fiscal policy at the Center on Budget and Policy Priorities, a Washington think tank.

"I think it is appropriate for people doing well to pay a higher share of their income (in taxes) than those at the bottom," Horney said."

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Courier News: "Wealthy N.J. gets a poor return on U.S. tax dollars"

-- Dan Damon

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