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Virginia is the Eighth Biggest Net Receiver of Federal Spending in 2013

Mar 08, 2016

 

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, Virginia is the eighth biggest net receiver of federal spending relative to federal taxes paid.

 

 

 

As shown in Chart 1, Virginia paid $12,054 per person in federal taxes in FY 2013—this was 12 percent above the national average ($10,722 per person) and ranked as the 11th highest level in the country.

 

 Chart 1 Virginia 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 Virginia was $971 per person—this was above the national average of $865 per person by 12 percent and ranked as the 9th highest in the country.

 

  • Payroll Tax: The federal payroll tax paid in Virginia was $3,395 per person—this was above the national average of $2,998 per person by 13 percent and ranked as the 13th highest in the country.

 

  • Excise Taxes: Federal excise taxes paid in Virginia was $281 per person—this was above the national average of $266 per person by 6 percent and ranked as the 23rd highest in the country.

 

  • Estate and Gift Taxes: Federal estate and gift taxes paid in Virginia was $54 per person—this was below the national average of $60 per person by -10 percent and ranked as the 12th highest in the country.

 

  • Custom Duties: Federal custom duties paid in Virginia was $109 per person—this was above the national average of $101 per person by 9 percent and ranked as the 10th highest in the country.

 

  • Miscellaneous Taxes: Federal miscellaneous taxes paid in Virginia was $352 per person—this was above the national average of $325 per person by 9 percent and ranked as the 10th highest in the country.

 

  • Deficit: The federal deficit, which is deferred taxation, accrued in Virginia was $2,317 per person—this was above the national average of $1,944 per person by 19 percent and ranked as the 8th highest in the country.

 

On the other hand, as shown in Chart 2, Virginia received $16,710 per person in federal spending in FY 2013—this was 56 percent above the national average ($10,722 per person) and ranked as the 2nd highest level in the country.

 

 Chart 2 Virginia 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 Medicare) in Virginia was $4,008 per person—this was above the national average of $3,318 per person by 21 percent and ranked as the 4th highest in the country (see our unique app showing federal pension data).

 

  • Other Direct Payments: Federal other direct payments (for example, the Earned Income Tax Credit) in Virginia was $1,988 per person—this was below the national average of $2,500 by -20 percent and ranked as the 13th lowest in the country.

 

  • Grants to State and Local Governments: Federal grants to state and local governments (for example, Medicaid) in Virginia was $1,180 per person—this was below the national average of $1,811 by -35 percent and ranked as the 4th lowest in the country.

 

  • Procurement: Federal procurement (for example, Department of Defense) in Virginia was $6,148 per person—this was above the national average of $1,337 by 360 percent and ranked as the highest in the country.

 

 

  • Interest on National Debt: Federal interest paid on the national debt in Virginia was $829 per person—this was above the national average of $699 by 19 percent and ranked as the 9th  highest in the country.

 

Overall, #Virginia receives $1.39 in #federalspending for every $1.00 sent to Washington, D.C. in #federaltaxes. (Click to Tweet) As shown in Chart 3, Virginia’s federal tax and spend ratio is the eighth highest in the country.

 

 Chart 3 Virginia 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 Virginia—though this was based on slightly older FY 2010 data.

 

 

 

The top 10 Virginia counties with the highest federal tax and spending ratios include (Virginia only has 16 counties):

 

  • Cumberland County, VA ($6.17)
  • NewPort News City, VA ($3.68)
  • Prince George County Hopewell City, VA ($3.62)
  • Norfolk City, VA ($3.32)
  • King George County, VA ($3.30)
  • Arlington County, VA ($3.28)
  • Richmond City, VA ($3.16)
  • Lee County, VA ($3.13)
  • Portsmouth City, VA ($3.01)
  • Nottoway County, VA ($2.66)

 

The bottom 10 Virginia counties with the lowest federal tax and spend ratios include: 

 

  • Goochland County, VA ($0.36)
  • Chesterfield County, VA ($0.38)
  • Henrico County, VA ($0.41)
  • Powhatan County, VA ($0.46)
  • New Kent County, VA ($0.49)
  • Greene County, VA ($0.50)
  • Fauquier County, VA ($0.52)
  • Stafford County, VA ($0.53)
  • Roanoke County Salem City, VA ($0.60)
  • Fluvanna County, VA ($0.60)

 

Note: The data is based on the federal fiscal year that runs from September 1 to October 30. The Bureau of Economic Analysis combines cities with less than 100,000 in population (in 1980) with an adjacent county.

 

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.



J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.


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