A Rockefeller Institute of Government study shows Louisiana receives $1.52 in federal spending for every tax dollar it sends to D.C. Director of Fiscal Analysis Laura Schultz says the Pelican State gets a higher return, because it doesn’t pay a lot in federal taxes, compared to other states.
“Louisiana ranks 42nd in the amount of taxes paid to the federal government,” said Schultz.
That means the state receives $3,785 more in federal money per person than it sends, good for 17th lowest in the nation. Schultz says most of that comes from programs for older residents.
“Federal spending is really driven by two programs, Social Security and Medicare, it looks like 61% of all of the federal spending in Louisiana comes from those two programs,” said Schultz.
Schultz says despite the lopsided give and take, Louisiana still receives fewer contracting dollars on average than most states.
“That would be construction that would be contracts to companies to provide goods and services to the government or provide new technologies,” said Schultz.