10.29.2008

Red States / Blue States - The real welfare recipients

As we have the debate on wealth distribution, let us go no further that which states are donor states versus the states that are the taker states.

It is a well known fact that seven nine percent of the donor states are blue states, while sixty nine percent of the taker states are red states. If states were people, that means the red states are welfare recipients.

The reason this happens is simple. The red states have two reasons, actually, that contribute to this situation.

1. The majority of red states are governed by conservative Republicans that think less taxes are
the answer to their states problems, until they need money to fund pet projects. When this
occurs, they run to the federal government for the answer.

2. You will not find many higher paying jobs in the red states. This is contributed to the idea that
unions and higher paying jobs are a burden to businesses that do maintain a presence in the
area. And many in the red states are still farmers or are attached to agriculture, where it is
more family based.

I can respect the farmers for not wanting their taxes to be increased based upon not knowing the crops pricing on any given year. But the over all culture of not believing in higher paying jobs is an interesting one.

As I have question some people in red states over the last five years, I have found a common theme - we are not entitled to higher paying jobs. This is an interesting concept that I have not found as common in the blue states.

I have been trying to figure out where this idea of asking a business owner to pay the employee more may come from. But as I started to get more input from people from red states, I found that many believe the concept borders on the ideology of Marxism or communism. People perceive by asking an employee for increased wages is a pseudo-unionized position which goes back to Marxism.

And now how does this effect the nation as a whole? By believing in less taxes, lower wages which presents a lower tax base, and recognizing the need for pet projects, but are unwilling to get the funds from within their own state, the red states have become the welfare states of America.

The question is what to do about it? The answer is simple. The Federal government should only give back what a state puts into the Federal coffers, however, if that state can show it is needed for a federally man-dated project, the project should be funded.

It is more complicated than I am providing in this article. If I were to detail it more in depth, I would lose many of you because of page length.

I have a link that might show the disparity in tax donor blue states and tax taker red states. It is an eye opener as well.

http://taxprof.typepad.com/taxprof_blog/2004/09/red_states_feed.html

I realize that this is from the year, 2004, but the study is done every four years.

No comments: