Washington is the Fifteenth Biggest Net Loser of Federal Spending in 2013

Jun 17, 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, Washington is the fifteenth biggest net loser of federal spending relative to federal taxes paid.

As shown in Chart 1, Washington paid $12,169 per person in federal taxes in FY 2013—this was 13 percent above the national average ($10,722 per person) and ranked as the 10^th highest level in the country.

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

Federal Taxes by Type in FY 2013:

Individual Income Tax: The federal individual income tax paid in Washington was $4,727 per person—this was above the national average of $4,164 per person by 14 percent and ranked as the 10^th highest in the country (see our unique app showing how cost-of-living impacts your federal income tax bill).

Corporate Income Tax: The federal corporate income tax paid in Washington was $966 per person—this was above the national average of $865 per person by 12 percent and ranked as the 10^th highest in the country.

Payroll Tax: The federal payroll tax paid in Washington was $3,613 per person—this was above the national average of $2,998 per person by 21 percent and ranked as the 7^th highest in the country.

Excise Taxes: Federal excise taxes paid in Washington was $254 per person—this was below the national average of $266 per person by -4 percent and ranked as the 10^th lowest in the country.

Estate and Gift Taxes: Federal estate and gift taxes paid in Washington was $29 per person—this was below the national average of $60 per person by -51 percent and ranked as the 15^th lowest in the country.

Custom Duties: Federal custom duties paid in Washington was $109 per person—this was above the national average of $101 per person by 9 percent and ranked as the 11^th highest in the country.

Miscellaneous Taxes: Federal miscellaneous taxes paid in Washington was $352 per person—this was above the national average of $325 per person by 9 percent and ranked as the 11^th highest in the country.

Deficit: The federal deficit, which is deferred taxation, accrued in Washington was $2,118 per person—this was below the national average of $1,944 per person by 9 percent and ranked as the 12^th highest in the country.

On the other hand, as shown in Chart 2, Washington received $11,193 per person in federal spending in FY 2013—this was 4 percent above the national average ($10,722 per person) and ranked as the 20^th highest level in the country.

Chart 2 Washington 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 Washington was $3,465 per person—this was above the national average of $3,318 per person by 4 percent and ranked as the 27^th highest 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 Washington was $1,801 per person—this was below the national average of $2,500 by -28 percent and ranked as the 6^th lowest in the country.

Grants to State and Local Governments: Federal grants to state and local governments (for example, Medicaid) in Washington was $1,677 per person—this was below the national average of $1,811 by -7 percent and ranked as the 22^nd lowest in the country.

Procurement: Federal procurement (for example, Department of Defense) in Washington was $1,758 per person—this was above the national average of $1,337 by 31 percent and ranked as the 11^th highest in the country.

Salaries and Wages: Federal salaries and wages (civilian and military personnel) in Washington was $1,666 per person—this was above the national average of $1,057 by 58 percent and ranked as the 7^th highest in the country (see our unique app showing federal payroll down to the individual employee).

Interest on National Debt: Federal interest paid on the national debt in Washington was $827 per person—this above the national average of $699 by 18 percent and ranked as the 11^th highest in the country.

Overall, #Washington receives $0.92 in #federalspending for every $1.00 sent to Washington, D.C. in #federaltaxes. (Click to Tweet) As shown in Chart 3, Washington’s federal tax and spend ratio is the fifteenth lowest in the country for 2013.

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

The top 10 Washington counties with the highest federal tax and spending ratios include:

Garfield County, WA ($2.60)
Lincoln County, WA ($2.16)
Benton County, WA ($2.11)
Columbia County, WA ($1.99)
Thurston County, WA ($1.57)
Pend Oreille County, WA ($1.57)
Okanogan County, WA ($1.52)
Pacific County, WA ($1.51)
Ferry County, WA ($1.51)
Whitman County, WA ($1.50)

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

Snohomish County, WA ($0.49)
Clark County, WA ($0.61)
San Juan County, WA ($0.65)
King County, WA ($0.65)
Franklin County, WA ($0.69)
Skamania County, WA ($0.69)
Whatcom County, WA ($0.74)
Skagit County, WA ($0.83)
Kittitas County, WA ($0.84)
Douglas County, WA ($0.89)

More county detail for Washington 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.

Washington Federal Tax and Spending Ratios by County FY 2010.jpg

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Wendy Warcholik

Dr. Wendy P. Warcholik has worked in public policy for nearly 20 years. She is currently the Director of the Family Prosperity Initiative at the American Conservative Union Foundation. She has also been at the Bureau of Economic Analysis, The Tax Foundation, and The Oklahoma Council of Public Affairs. She received her PhD in Economics from George Mason University (Fairfax, VA).