
"When it comes to understanding where your tax dollars actually go, the answer might surprise you. According to data from USASpending.gov, total federal obligations per capita can vary dramatically across states, with some receiving more than $24,000 per resident while others receive less than half that amount. These numbers are important because they help shape local economies, influence the cost of living, and quietly determine how far the dollar can stretch across the country."
"If you try to look under the hood, it's easy to find a way, as examples like military installations, federal contractor hubs, all play a role, as do aging populations that are drawing on Social Security, Medicare, Medicaid, and government research facilities, and direct transfers to state and local governments all contribute to the total. States that house major defense assets, serve as headquarters for federal agencies, or have demographics that draw heavily on the kinds of entitlement programs that naturally receive more capital."
Federal obligations per capita measure the total federal spending occurring in each state divided by its population. The measure includes Social Security, Medicare reimbursements, defense contracts, federal employee salaries, grants to universities, and congressional infrastructure funding. Values vary dramatically across states, with some exceeding $24,000 per resident and others receiving less than half that amount. Higher per-capita obligations commonly occur in states with large military installations, federal agency headquarters, significant federal contractor activity, government research facilities, or older populations drawing more on entitlement programs. Differences influence local economies, cost of living, and the effective purchasing power of federal dollars.
Read at 24/7 Wall St.
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