New Jersey ranks 48th in return on taxes
JANUARY 2, 2015, 11:19 PM LAST UPDATED: FRIDAY, JANUARY 2, 2015, 11:25 PM
BY HERB JACKSON
RECORD COLUMNIST |
THE RECORD
New Jersey residents and businesses paid nearly $37 billion more in federal taxes than the government sent back to the state in 2013, the second-biggest deficit in the country, new data compiled by a non-profit group show.
Another way of looking at the numbers: For every $1 paid to the Internal Revenue Service, the state got back only 68 cents in federal largess, ranking the state 48th in the nation.
It’s a picture New Jersey has seen before. And it’s not going to change anytime soon, many analysts say.
The reason has much to do with the relative wealth of New Jerseyans, compared with their counterparts in other states, officials say; the federal tax system imposes higher rates on larger incomes, and the federal social-service network directs much of its money to programs for the poor, creating the gap.
“It’s true New Jersey pays more than it gets back per person, but if you look at states at the other end of the spectrum, such as Mississippi, which is one of the most poverty-stricken, it’s much better to be in New Jersey’s position,” said Lindsay Koshgarian, the research director for the National Priorities Project, which published the latest data.
Mississippi received $4.89 in federal spending for every $1 it paid in taxes, the highest rate of any state, The Record’s analysis of the group’s data found.
https://www.northjersey.com/news/new-jersey-ranks-48th-in-return-on-taxes-1.1185373
