Secession would cost the New Confederacy

Nov. 18, 2012 at 6:26 PM   |   Comments

WASHINGTON, Nov. 18 (UPI) -- States most wanting to secede, such as Alabama, Georgia and Louisiana, would stand to lose millions in federal tax money, tax experts say.

Many say seceding from the United States would result in never having to file a federal tax return or having to implement federal laws such as the Affordable Care Act, but MarketWatch reported most living in the New Confederacy of the South and West would end up paying much more in taxes than they do now or get fewer government services.

Alabama is one of seven states whose secession petitions have landed 30,000 signatures. But Alabama, whose Legislature also passed, and its governor signed, a 10th Amendment Resolution touting states' rights over federal powers, got back about $1.66 in federal spending for every dollar its citizens paid in federal taxes.That gap -- the subsidy the rest of America and primarily Yankees -- paid to Alabama totaled about $3,800 for every person in the state, the right-leaning Tax Foundation in Washington said.

Louisiana got back about $1.78 from Washington for every dollar its citizens paid to Washington or about $4,200 per resident.

Simply put, the Northeast and the West Coast make most of the money in the country and their higher incomes and the federal progressive income tax results in their subsidizing the rest of the country. It's a situation that's been going on for a very long time.

For example, the seven states that gathered 30,000 or more signatures to secede -- Alabama, Florida, Georgia, Louisiana, North Carolina, Tennessee and Texas -- paid about $473 billion in federal taxes and received about $533 billion in federal spending, or a $60 billion subsidy.

Most states in the Northeast, the Great Lakes and on the West Coast paid much more than they got back -- Californians paid $1,300, New Yorkers paid $2,200 and New Jerseyans paid $3,200 more than they got back.

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