Study: California Gets 50 Cents For Every Dollar Paid In Federal Income Tax

LOS ANGELES (CBSLA.com) — A new study shows Californians receive 50 cents back for every dollar of federal income tax paid.

The WalletHub study found that California ranks a lowly 47th in the nation out of 50 states, including the District of Columbia, when it comes to receiving federal funding for schools, hospitals, and roads and bridges, among other things.

“Because California is pretty self-reliant, doesn’t get a lot back from the feds in terms of every dollar its putting in, it gets less than 50 cents back per dollar, so its residents really are not seeing as much as residents in other states,” analyst Jill Gonzalez said told KNX1070 NEWSRADIO.

Much of California’s poor return on investment, or ROI, has to do with higher tax rates, but moreover the overall economy and its employment rate, and infrastructure spending.

“Infrastructure, especially when it comes to the quality of roads and bridges, the average commute time, which is pretty infamous in California, and parks and recreation expenses per capita as well,” she said.

California’s not alone in giving more than receiving – Delaware and New Jersey receive less than 30 cents per dollar paid in federal taxes.

As for the states with the best ROI – New Hampshire comes in at No. 1, followed by South Dakota, Florida, Virginia and Colorado, according to WalletHub.

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