Fact check: Which states contribute more federal taxes than they receive in federal spending?

1. Summary of the results

As of 2023, 19 states contributed more in federal taxes than they received in federal spending ^[1]. The largest net contributors were:

• New York: $89 billion
• California: $78 billion
• New Jersey: $70 billion

On a per-capita basis, the highest contributors were:

• Delaware: $10,505 per person
• Minnesota: $7,605 per person
• New Jersey: $7,456 per person ^[1]

2. Missing context/alternative viewpoints

• Historical context shows a significant change in the number of "donor states" - there were only 8 donor states before the pandemic ^[2], compared to 19 in 2023.
• The primary reason for these disparities is the concentration of high-income earners in certain states ^{[2] [3]}. States like New York, New Jersey, Connecticut, and California have more high-income residents who pay more under the progressive tax system ^[3].
• Using New York as an example, in 2019 the state received only $0.91 back for every dollar sent to the federal government, resulting in a net contribution of $22.8 billion ^[2].

3. Potential misinformation/bias in the original statement

• The question itself might suggest that states contributing more are somehow "better" or "more valuable," which ignores the purpose of federal spending distribution:
• High-tax states benefit from the concentration of wealth and business opportunities ^[3]
• The federal system is designed to redistribute resources based on need, not contribution
• The data could be used politically by:
• Representatives from donor states arguing for more federal funding
• Wealthy states advocating for tax reform
• Politicians in recipient states defending the current system as necessary for national equity