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New Jersey is the Biggest Net Loser of Federal Spending in 2013

Oct 23, 2015


New Jersey Federal Tax and Spend Ratio Infographic FY 2013.jpg

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In the course of collecting taxes and spending money, the federal government inevitably creates “winners” and “losers” across the American landscape. In Fiscal Year (FY) 2013, New Jersey is the biggest net loser of federal spending relative to federal taxes paid.

 

 

 

As shown in Chart 1, New Jersey paid $15,216 per person in federal taxes in FY 2013—this was 42 percent above the national average ($10,722 per person) and ranked as the 3rdhighest level in the country. In part, this is caused by the unfair income tax penalty that Uncle Sam imposes on high cost-of-living areas.

 

 

 Chart 1 New Jersey Federal Taxes Per Capita by State Fiscal Year 2013.jpg

 

Federal Taxes by Type in FY 2013:

 

 

  • Corporate Income Tax: The federal corporate income tax paid in New Jersey was $1,053 per person which was above the national average of $865 per person by 22 percent and ranked as the 7th highest in the country.

 

  • Payroll Tax: The federal payroll tax paid in New Jersey was $4,251 per person which was above the national average of $2,998 per person by 42 percent and ranked as the 1st highest in the country.

 

  • Excise Taxes: Federal excise taxes paid in New Jersey was $278 per person which was above the national average of $266 per person by 4 percent and ranked as the 25th highest in the country.

 

  • Estate and Gift Taxes: Federal estate and gift taxes paid in New Jersey was $38 per person which was below the national average of $60 per person by -37 percent and ranked as the 25th highest in the country.

 

  • Custom Duties: Federal custom duties paid in New Jersey was $123 per person which was above the national average of $101 per person by 22 percent and ranked as the 3rd highest in the country.

 

  • Miscellaneous Taxes: Federal miscellaneous taxes paid in New Jersey was $396 per person which was above the national average of $325 per person by 22 percent and ranked as the 3rd highest in the country.

 

  • Deficit: The federal deficit, which is deferred taxation, accrued in New Jersey was $3,049 per person which was below the national average of $1,944 per person by 57 percent and ranked as the 2nd highset in the country.

 

On the other hand, as shown in Chart 2, New Jersey received $9,845 per person in federal spending in FY 2013—this was -8 percent below the national average ($10,722 per person) and ranked as the 19th lowest level in the country.

 

 Chart 2 New Jersey Federal Spending Per Capita by State Fiscal Year 2013.jpg

 

Federal Spending by Type in FY 2013:

 

  • Retirement and Disability: Federal retirement and disability payments (for example, Social Security and federal civilian and military retirement) in New Jersey was $3,167 per person which was below the national average of $3,318 per person by -5 percent and ranked as the 12th lowest in the country (see our unique app showing federal pension data).

 

  • Other Direct Payments: Federal other direct payments (for example, Medicare and the Earned Income Tax Credit) in New Jersey was $2,665 per person which exceeded the national average of $2,500 by 7 percent and ranked as the 17th highest in the country.

 

  • Grants to State and Local Governments: Federal grants to state and local governments (for example, Medicaid) in New Jersey was $1,868 per person which exceeded the national average of $1,811 by 3 percent and ranked as the 23rd highest in the country.

 

  • Procurement: Federal procurement (for example, Department of Defense) in New Jersey was $759 per person was below the national average of $1,337 by -43 percent and ranked as the 23rd lowest in the country.

 

 

  • Interest on National Debt: Federal interest paid on the national debt in New Jersey was $837 per person which exceeded the national average of $699 by 20 percent and ranked as the 8th highest in the country.

 

Overall, #NewJersey receives $0.65 in #federalspending for every $1.00 sent to Washington, D.C. in #federaltaxes. (Click to Tweet) As shown in Chart 3, New Jersey’s federal tax and spend ratio is the lowest in the country for 2013.

 

 Chart 3 New Jersey Federal Tax and Spending Ratios by State Fiscal Year 2013.jpg

 

Of course, federal taxes paid and federal spending received do not flow evenly throughout the state. As such, we have also calculated the federal tax and spending ratios for every county in New Jersey—though this was based on slightly older FY 2010 data.

 

 

Only a single county in New Jersey receives more in federal spending than they pay in federal taxes:


  • Mercer County, NJ ($1.20)

 

All other counties in New Jersey pay more in federal taxes than they receive in federal spending:


  • Cumberland County, NJ ($0.99)
  • Cape May County, NJ ($0.91)
  • Burlington County, NJ ($0.86)
  • Atlantic Count, NJ ($0.85)
  • Camden County, NJ ($0.81)
  • Essex County, NJ ($0.79)
  • Ocean County, NJ ($0.77)
  • Salem County, NJ ($0.76)
  • Hudson County, NJ ($0.70)
  • Passaic County, NJ ($0.70)
  • Monmouth County, NJ ($0.69)
  • Warren County, NJ ($0.56)
  • Union County, NJ ($0.52)
  • Middlesex County, NJ ($0.50)
  • Gloucester County, NJ ($0.48)
  • Bergen County, NJ ($0.40)
  • Sussex County, NJ ($0.37)
  • Morris County, NJ ($0.37)
  • Somerset County, NJ ($0.28)
  • Hunterdon County, NJ ($0.28)

 

More county detail for New Jersey is shown in the color-coded map below.

 

Note: The data is based on the federal fiscal year that runs from September 1 to October 30.

 

Click here to view our full federal tax and spending data app with details by state, by county, by type of tax and spending, and over time.


New Jersey Federal Tax and Spending Ratios by County FY 2010.jpg

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J. Scott Moody

J. Scott Moody has nearly 20 years experience as a public policy economist with a specialty in tax policy and has over 180 publications. He has worked for numerous national and state-based think tanks such as the American Conservative Union Foundation, Federalism In Action, Tax Foundation, Heritage Foundation, and The Maine Heritage Policy Center.


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