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The 10 States That Give the Most Money and Benefits to Their Residents, a/k/a the 10 Most Socialist States; Ready for the shocker – NY is #4 (state and local Tax burden – NY is #2)

December 12, 2011

These Are the 10 States That Give the Most Money & Benefits to Their Residents

Like it or not, the Occupy movement has turned a lot of the nation’s attention to the subject of “income inequality.” Occupy protesters around the country have labeled themselves the 99 percent, in contrast to the wealthiest 1 percent.

While this has captured the public’s attention, differences in wealth have always existed, and some states have tried to address this by redistributing money through education spending, unemployment benefits, health care, welfare, and other means.

Incidentally, and this is important to note, the states that are most generous with money and benefits also tend to have the highest costs of living, the biggest tax burdens, and/or the greatest “income inequality” (as measured by the Gini coefficient).

Tax burden refers to the average amount a person pays in taxes as a percentage of his income. The Tax Foundation calculates each state’s tax burden by taking the total amount paid by the state’s residents in taxes, and dividing it by the total income of the state’s residents.

Source: The Tax Foundation/Becket Adams

Click to enlarge

The cost of living data is from the Missouri Economic Research and Information Center. According to their website, they “[derive] the cost of living index for each state by averaging the indices of participating cities and metropolitan areas in that state.”

“The least expensive areas continue to be the Midwest and Southern States.”

Source: The Missouri Economic Research and Information Center/Becket Adams

Click to enlarge

For the purpose of this article, the percent of former weekly wages covered by state unemployment insurance was used to rank unemployment benefits by state (based on data from The National Employment Law Project).

The amount each state spends on education per student, including teacher salaries, as well as data on “income inequality,” measured by the Gini coefficient, comes from the Census Bureau.

Medicaid spending per recipient is from The Urban Institute and Kaiser Commission on Medicaid and the Uninsured. Medicare spending per recipient is from the Centers for Medicare and Medicaid Services.

The average amount each state employee receives in pension benefits per year was ranked by using data from the Center for Retirement Research at Boston College on defined benefit plans.

Data on the average number of months of benefits received and the average monthly amount of cash assistance from Temporary Assistance for Needy Families (TANF), a welfare program that provides cash assistance to American families with dependent children, was obtained from the Administration for Children and Families.

These are the states that love to “spread the wealth,” so to speak:

4. New York
Average pension benefits: $17,459
Total per pupil spending: $18,126
Medicaid payments per beneficiary: $9,057
Pct. of weekly wages covered by unemployment benefits: 26.9 percent
No. of months of TANF received: 43.9
Avg. TANF cash assistance per month: $499

New York spends more than $18,100 per student on education each year, which is more than any other state in the nation. Approximately $12,500 of this is spent on teacher salaries and benefits alone. The state’s medicaid payments per beneficiary of $9,057 is the largest in the country, and more than $600 than the state that spends the second most.

New York has the second largest state and local tax burden, and the third highest cost of living.

See the rest of the list here.

#1. Rhode Island, 2. Massachusetts, 3. New Jersey (and NY nows beats Hawaii and California which is amazingly now down to #10)

(Charles B. Stockdale, Michael B. Sauter, Ashley C. Allen—24/7 Wall St./The Blaze)

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