From what I read, red states with lower taxes tend to be *more* dependent on federal money. Blue states tend to have higher GDP per capita, and thus bring in more federal tax money more than federal aid. In the Wallethub study below, for example, the most dependent were New Mexico, Kentucky, and Mississippi - while the least dependent were Kansas, New Jersey, and Delaware.
https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700
https://taxfoundation.org/states-rely-most-federal-aid/
https://taxfoundation.org/federal-spending-received-dollar-taxes-paid-state-2005/
If you dispute these, do you have an another source that shows different results, where blue states are more federally dependent?
A couple things:
First, the statistics used to justify the 'red states are more dependent' usually pile in -military- spending. Like, for bases. Not exactly welfare there.
Second, the state and local tax deduction is one of the biggest scams in the system. Residents of states and municipalities get to apply that tax as a deduction against federal taxes. Since we can't just magic that money up, someone has to make up the balance -- usually states and municipalities with lower tax rates.
Third, you can lecture me all you like, but California's pension system is completely out of control. The unfunded liabilities are, if unchecked, going to absolutely cripple them -- hence why California's been trying to find ways to tax people who leave or don't actually LIVE in California.
And I guarantee there will be a bailout for those hard-blue states. Rewarded, for their fiscal incompetence.
So you dispute the points, but you don't have any source that says differently? The state and local tax deductions are *included* in the calculations I gave. So, even with those deductions, blue states are still on average giving in more in federal taxes than they are receiving federal spending, compared to red states. I agree that the deduction can be seen as a scam -- but it is counterbalanced by the scam of getting more federal money.
As for military, in terms of economics, it's no different than any other federal government contract. It puts federal money into the state. If a state could get more military contracts and get more money, then the state benefits.
Yes, California has a problem with its pension system - but lots of states have different financial woes. In general, blue states are not financially incompetent. On average, blue states have higher GDP per capita and household income than red states. They host dominant financial institutions like Wall Street, Hollywood, and Silicon Valley. There's plenty of problems in blue states to nitpick, but overall, their finances are no worse than red states.
In terms of general debt, California is roughly average in debt as a percentage of GDP, and less than, for example, Texas.
https://www.usgovernmentspending.com/state_spending_rank_2021pH0C