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I always find those numbers interesting. IIRC, they come from the Taxpayer foundation and generally stop at “zip code where the Feds send the check”. Hypothet
by coredog64 7y ago
I always find those numbers interesting. IIRC, they come from the Taxpayer foundation and generally stop at “zip code where the Feds send the check”.
Hypothetical example: The DoE wants to build a supercomputer from XBox 360s (ASCI RRoD). They select UNM as the lead contractor and write a check for $101M. UNM buys $50M in XBoxes from MSFT in Seattle, and another $50M for compilers and professional services from IBM in Armonk, NY. Did NM get $101M for their taxes, or $1M?
- bilbo0s 7y agoThat might be meaningful if you could show that most of the federal money going to New Mexico was used for R&D as opposed to, say, social support programs. And then you could try to show that the money going to all of the other "taker" states was similarly being used on developmental projects as opposed to social support. I'd bet on it not being used on R&D. In fact, I'm betting most of that money never even leaves the state of New Mexico. Those contractors building roads aren't being paid with monopoly money. I could be wrong, but I doubt it. That's one of the reasons I'm such a big proponent of lower taxes. The tax resource allocation scheme is fundamentally unfair as currently structured. There are other reasons I support lower taxes, but you don't want to get me started.
- saagarjha 7y agoNote that often the ZIP code that is chosen is a result of senators pulling strings to get it awarded to their constituents, even for R&D–that's often new jobs.
- notyourday 7y agoMostly congressmen, not senators. And that's what earmarks are.