Eric Massa was on the Bob Lonsberry show this morning, and it was all love. I thought that Eric and Bob would end the show with hugs and chaste-but-heartfelt kisses, but apparently they ran out of time. Based on Lonsberry's reception, I'd say that Massa has a good chance for some crossover votes this Fall.
Along with the usual issues -- the war in Iraq, flag burning, NAFTA and gun control -- Massa raised an interesting one: federal tax inequity. Massa wants New York to get back more of what it pays in federal tax.
This is the first time I've heard a New York politician mention this issue, and I've always wondered why it isn't more of a hot button for New Yorkers. According to this 2004 accounting (pdf), New York ranks 43rd in the amount of federal funds that are returned to the state. Only 79 cents of every dollar that we pay in federal taxes come back to New York.
So, who's on top? Mainly rural red states. Let's look at one: North Dakota, which ranks 5th. For every dollar that North Dakotans pay in federal tax, they get $1.73 back. In other words, North Dakotans get a 73 cent free ride from people like us.
And where are North Dakotans spending our money? Well, one obvious place is their shiny new airports. Bismarck, the state capital, has just opened this new facility. Their old terminal was apparently so overwhelmed by the whopping 10 arrivals per day that it required an expansion. I'm sure all New Yorkers who travel to Bismarck regularly will appreciate how our tax dollars helped finance this beautiful building.
Minot (city motto: "Why Not Minot?") doesn't have an airport quite the size of Bismarck's, but I think you'll agree that it appears adequate to serve the crushing load of three (3) arrivals per day. Of course, a beautiful terminal alone doesn't account for all the federal aviation money going to Minot, because Minot is an International airport. That's right, there's a Customs office in Minot. I'm told that celebrities returning to the US in private jets like to stop here to get their passports stamped because there are no delays. There shouldn't be: the only commercial traffic flying into Minot is from Northwest's hub in Minneapolis.
I hear a lot of complaints about high taxes in New York, but Massa's the first guy I've heard hit this nail on the head. There may be some good reasons for the per-capita disparity between New York and states like North Dakota, but I think that the North Dakotans can postpone the construction of another new airport and send a little of that cash back East.
Comments (8)
I would rather have a congressman who wanted to take less from me in taxes in the first instance.
Posted by Anonymous | July 21, 2006 12:31 PM
Posted on July 21, 2006 12:31
If the per-capita federal return number were higher, the state of New York would have more federal money to spend. Therefore, your New York State taxes could be lower. So, in a round-about way, Massa is advocating lower taxes.
Posted by Rottenchester | July 21, 2006 12:57 PM
Posted on July 21, 2006 12:57
IMHO, I don't mind paying the taxes, as long as I get the services. I agree that our input/output to the national government isn't very fair. It's ironic that a lot of the states getting more than their share of federal dollars are 'states rights' and 'independance' minded.
What I'd be interested seeing is Taxes vs. Services charted and measured. Germany, for example, has high taxes but they have great roads, nearly-free college, and universal healthcare.
Posted by FarMcKon | July 22, 2006 9:38 PM
Posted on July 22, 2006 21:38
You make a good point, but it's very hard to compare services in rural states with urban states. The Dakotas, for example, probably have one of the lowest per-capita spends on education, yet their college entrance exam scores are regularly in the top 10. So, spending on this service is low, yet results are high. The reasons are complex: lack of intractable urban poverty, a relatively homogenous 2nd and 3rd generation immigrant culture that values education, etc. If the comparison is made on results of the service, rather than level of service, then NY would probably be getting a larger share of the federal pie.
Posted by Rottenchester | July 23, 2006 11:52 AM
Posted on July 23, 2006 11:52
"yet their college entrance exam scores are regularly in the top 10."
That's because so few people in the state take college entrance exams. It's a very misleading statistic -- it means essentially nothing.
Posted by TomT | July 23, 2006 2:22 PM
Posted on July 23, 2006 14:22
I don't think you're right about college attendance, but I couldn't find a factual source to refute your claim.
However, North Dakota beats New York in grade 4 and grade 8 reading and math scores. Current expenditures per pupil: New York, $12,509. North Dakota, $7,004. South Dakota, which spends $6,502 per pupil, beats New York in all but one of those scores, (4th grade reading is 1 point ~ .5% less than NY). It may be cheaper to live in rural SD, but is it *half* as expensive as NYS?
Source: http://nces.ed.gov/programs/stateprofiles/
Posted by Rottenchester | July 24, 2006 9:08 AM
Posted on July 24, 2006 09:08
FarMckon
"What I'd be interested seeing is Taxes vs. Services charted and measured. Germany, for example, has high taxes but they have great roads, nearly-free college, and universal healthcare."
And, of course, an unemployment rate of about 18%, much lower economic growth than the US, much worse immigration/assimilation problems, and I wouldn't want anyone I love to suffer their rationed healthcare system. And, I hardly think US roads are that bad.
Too high taxes are always an economic killer, regardless of how the money ends up being spent (redistributed) - but, government almost always spends the money inefficiently, even at things government should be doing, like defense.
Posted by Great Banana | July 24, 2006 10:54 AM
Posted on July 24, 2006 10:54
Too high taxes are always an economic killer, regardless of how the money ends up being spent (redistributed) - but, government almost always spends the money inefficiently, even at things government should be doing, like defense.
Bullshit.
Posted by Exile on Ericsson St. | August 1, 2006 6:45 PM
Posted on August 1, 2006 18:45