Is California Getting a Raw Deal?
This is an original spin on the California fiscal crisis from Neil Sinhababu:
"Californians only get back 78 cents for each dollar of federal taxes, ranking it 43rd of 50 for money tossed back into the state." I'd seen those numbers before, but I hadn't thought of them in the context of the California budget crisis. It's going to be hard to balance your budget when 22% of the money you send to DC doesn't come back.
I wonder to what extent the hideous proportional underrepresentation of California in the US Senate is a factor in this. In any case, part of the story has to be that California is an expensive state, which causes a bigger tax bite that isn't matched in the spending you receive.
It's certainly not the main factor behind California's crisis. But it's not helping. And it does put California's possible bailout in a new light: This isn't charity. It's payback.
(Photo credit: AP Photo/Marcio Jose Sanchez)
June 2, 2009; 10:03 AM ET
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