GEM: FROM SCOTT SUMNER: BUT POORER STATES DON’T VOTE TO INCREASE TAXES “There ar

GEM: FROM SCOTT SUMNER: BUT POORER STATES DON’T VOTE TO INCREASE TAXES

“There are studies showing places like Mississippi receive massive subsidies from other states. In my view those data are somewhat misleading. If taxpayers in New York pay into Social Security for many years, and then receive benefits when they retire in Florida, it seems a bit misleading to view that as some sort of gift from the state of New York to the state of Florida. Ditto for money spent on things like nuclear weapons silos in North Dakota. Nonetheless, I accept the basic point that poorer states like Mississippi are net receivers of federal money. But Mississippi does not elect Senators who call for higher taxes on the rich with the money going to support poor people in Mississippi.”