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News / Nation & World

At $37,000, D.C. residents pay most in federal taxes per capita

Washington ranks 12th in nation

By STEPHEN OHLEMACHER, Associated Press
Published: April 17, 2017, 8:30pm

WASHINGTON — As Tax Day approaches, show some love for the good people who live in the nation’s capital.

Washington, that swampy den of iniquity that politicians love to scorn, sends the most tax dollars per person to the U.S. government.

Last year, the District of Columbia paid Uncle Sam $37,000 per person in federal income, payroll and estate taxes. The next closest was Delaware, at $16,000 per person.

“It’s where the money is,” said Roberton Williams, a fellow at the Tax Policy Center. “The reason the District pays so much in taxes is that there are a lot of high-income people there.”

Who pays

U.S. residents paid Uncle Sam an average of $8,943 per person in federal income, payroll and estate taxes in 2016.

A look at how the District of Columbia and the states rank in per capita federal taxes:

1. District of Columbia: $36,569

2. Delaware: $16,322

3. Minnesota: $14,624

4. Massachusetts: $14,516

5. Connecticut: $13,773

6. New Jersey: $12,852

7. New York: $11,758

8. Illinois: $10,814

9. Ohio: $10,735

10. Maryland: $10,455

11. Rhode Island: $10,316

12. Washington: $9,669

13. Nebraska: $9,566

14. California: $9,305

15. Pennsylvania: $9,179

16. Colorado: $9,030

17. Missouri: $8,986

18. North Dakota: $8,621

19. Louisiana: $8,490

20. Tennessee: $8,481

21. South Dakota: $8,398

22. Florida: $8,366

23. Virginia: $8,323

24. Arkansas: $8,318

25. New Hampshire: $8,180

26. Wisconsin: $8,115

27. Texas: $7,858

28. Indiana: $7,694

29. Kansas: $7,676

30. Michigan: $7,405

31. Oregon: $7,268

32. Georgia: $7,211

33. Alaska: $7,171

34. North Carolina: $7,133

35. Wyoming: $7,128

36. Iowa: $7,026

37. Kentucky: $6,848

38. Vermont: $6,728

39. Nevada: $6,372

40. Utah: $6,291

41. Oklahoma: $5,803

42. Idaho: $5,769

43. Hawaii: $5,505

44. Montana: $5,504

45. Arizona: $5,446

46. Maine: $5,432

47. Alabama: $4,874

48. South Carolina: $4,685

49. New Mexico: $4,032

50. Mississippi: $3,901

51. West Virginia: $3,616

Sources: IRS, Census Bureau

Washington is an outlier because, despite years of lobbying, it is not a state. It doesn’t even have a vote in Congress. It is, however, a city with a relatively high cost of living.

West Virginia, Mississippi and New Mexico have low median household incomes, which helps explain why they their residents pay far less in federal taxes. West Virginia paid $3,600 per person last year, while Mississippi paid $3,900 per person and New Mexico residents paid a little more than $4,000.

The Associated Press calculated each state’s per-capita tax bill using data from the IRS and population estimates from the Census Bureau.

The deadline to file federal tax returns is Tuesday. It was pushed back because the usual April 15 deadline was Saturday, and because Monday is a holiday in the District of Columbia.

The IRS says millions of taxpayers have yet to file their returns. As they do, they shouldn’t feel too bad for D.C. residents.

The nation’s capital gets a good return on its tax investment. For every dollar the District sends to the federal government, it gets back almost $4, according to a 2015 study by the New York state comptroller.

For years, the late Sen. Daniel Patrick Moynihan, D-N.Y., would document that New York paid more to the federal government than it got back. In 2015, the state’s comptroller took up the cause.

Washington’s rate of return is higher than any state — most of it comes from wages for federal employees. The closest state is Mississippi, which gets back $2.57 in federal spending for every dollar it sends to Washington. New Mexico, West Virginia and Alabama are also big winners when it comes to federal taxes and spending.

These states are big takers because they have a lot of residents who get federal benefits, including Social Security, Medicare, Medicaid, disability benefits and food stamps.

“They have lower incomes so they pay less in taxes and, because they have lower incomes, they get more federal aid,” said Morgan Scarboro, a policy analyst at the Tax Foundation.

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