×

Blue states need Washington less than red states

“Move it back to the states,” Donald Trump says about education, about FEMA and, as will probably happen, about Medicaid. What that would mean to Americans depends on what state they live in. As the federal government moves forward on this, it’s a good bet that high-income states can handle the changes better than low-income ones.

Yes, it’s true: Taxpayers in high-income states, largely blue ones, have been subsidizing residents of less wealthy red states.

A few years ago, there was an interesting feud between Joe Manchin, senator from West Virginia, and Mikie Sherrill, who represents a well-heeled congressional district in New Jersey. Funds for a federal child care subsidy were to be cut, and Manchin wanted the plan rejiggered to send a bigger chunk to the many low-income families of West Virginia. That would have meant less help for suburban parents in New Jersey.

Sherrill responded: “New Jersey already pays more than $10 billion in taxes than we receive in federal spending, and I will not let another federal program pay less to New Jersey taxpayers than it does to all other Americans.”

According to Trump’s vision of New Federalism, services provided by the federal government would be better handled by states. But the bills for these services would also largely go to the states. Obviously, states with high incomes and high taxes are better equipped to replace Washington dollars.

Florida may have attracted a lot of rich people seeking low taxes, but if the Federal Emergency Management Agency stopped showering money for hurricane relief every time a big blow tears up the coastline — forcing Floridians to bear more of the cost — well, good luck with that.

FEMA’s core principle for disaster relief has been “locally executed, state managed and federally supported.” Home insurance costs have already skyrocketed in Florida. Add to that the economic fallout of making the people living there pay more for building back?

Public schools are mostly funded by state and local taxpayers. The Department of Education does give money to schools with high percentages of low-income students, many in rural areas, and pays for special education. Over 23% of Mississippi’s school district revenue comes from federal funding. By contrast, the feds account for only about 7% of New York state’s.

I may be the thousandth pundit to note that Trump-o-nomics hurts working people most, that is, his voters. What can you say except that elections have consequences.

Froma Harrop is an independent voice on politics, economics and culture. Follow her on Twitter @FromaHarrop. Write her at fharrop@gmail.com.

Starting at $3.23/week.

Subscribe Today