This argument “high tax blue states subsidize low tax red states!” or the other way around, when talking about tax policy. The typical states that authors bring up will be California, Mississippi, and New York. One west cost blue, one east coast blue, and one southern red.
So the first question, is do we treat all “Federal Spending” the same? I like to start this off with a “no.” Since there is not an even distribution of military bases across the states, it makes sense to eliminate military spending from the conversation. For example, Montana has very few military bases, and Texas has quite a few military bases. I don’t want to ignore the economic benefit of the military presence in a state, but I want to put it aside as Federal spending in a state, not Federal spending FOR a state.
More @ Wandering Through the Night
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