CALIFORNIA LOSES MONEY BEING PART of AMERICA

We also lose money funding the military.

California lost $14 billion last year in Federal Income taxes that we received NO SERVICES for.

“We described the difference as the balance of payments. For example, California’s balance of payments is -$13.7 billion. This means California residents get less in return than they pay for.”

https://www.businessinsider.com/federal-taxes-federal-services-difference-by-state-2019-1

CA PAID THE FEDERAL GOVERNMENT 1995–2014

• 1995 negative $4,650,091,000
• 1996 $7,120,825,000.00
• 1997 $16,307,158,000.00
• 1998 $36,917,957,000.00
• 1999 $50,666,031,000
• 2000 $82,850,309,000
• 2001 $76,356,059,000
• 2002 $25,900,672,000
• 2003 $7,904,714,000
• 2004 $5,544,491,000.00
• 2005 $28,200,503,902.17
• 2006 $47,258,363,492.23
• 2007 $54,987,543,325.05
• 2008 $33,229,162,439.61
• 2009 negative $74,084,999,528
• 2010 negative $74,812,072,028
• 2011 negative 74,796,117,800
• 2012 negative 46,117,681,779
• 2013 negative 7,405,895,395
• 2014 $13,383,580,392.45

CA was paying around $50 Billion in extra taxes — each year for which its saw no benefit from 1996 to 2008.

From 2009 to 2013, CA was receiving more from the Federal government than it paid in. [note: THIS WAS INFLATED MONEY — NOT SAME VALUE AS DOLLARS CALIFORNIA SHIPPED TO FEDERAL GOVERNMENT FROM 1996 — ALTHOUGH ON PAPER IT IS COUNTED AS THE SAME] This also happened in 1995.

In 2014, the trend returned and CA paid more into America by around $13 Billion.

To be clear in case the graph does not make a strong enough case

When you add up all of the money America paid to CA between 1995–2014, and you subtract all of the money that CA paid to the Fed government between 1995–2014 = CA still paid $200 Billion extra to America, over the last decade.

AMERICA PAID CALIFORNIA MORE THESE YEARS

• 1995 negative $4,650,091,000
• 2009 negative $74,084,999,528
• 2010 negative $74,812,072,028
• 2011 negative $74,796,117,800
• 2012 negative $46,117,681,779
• = $281,866,857,530 America paid more to CA between 1995–2014

CALIFORNIA PAID THE FEDERAL GOVERNMENT MORE THESE YEARS

• 1996 $7,120,825,000.00
• 1997 $16,307,158,000.00
• 1998 $36,917,957,000.00
• 1999 $50,666,031,000
• 2000 $82,850,309,000
• 2001 $76,356,059,000
• 2002 $25,900,672,000
• 2003 $7,904,714,000
• 2004 $5,544,491,000.00
• 2005 $28,200,503,902.17
• 2006 $47,258,363,492.23
• 2007 $54,987,543,325.05
• 2008 $33,229,162,439.61
• 2014 $13,383,580,392.45
• = $481,977,278,551 Billion CA paid to America in extra income 1995–2014
• $481,977,278,551 — $281,866,857,530 = CA lost being part of America 1995–2014: $200,110,421,021 Billion OR $200.1 Billion

DATA REFERENCES:

The government cut a valuable report on federal spending on states. Now two think tanks are trying to recreate it

By Niraj Chokshi

Washington Post

October 16, 2014

https://www.washingtonpost.com/blogs/govbeat/wp/2014/10/16/what-do-you-do-when-the-feds-cut-a-valuable-program-build-your-own-of-course/?utm_term=.76cf697aaef3

“Through fiscal year 2010, the Census Bureau produced the annual Consolidated Federal Funds Report, tracking Federal expenditures both geographically and by agency and program. As of 2011, funding for the Federal Financial Statistics program, of which the CFFR was part, was cut from the Federal budget. Private organizations such as the National Priorities Project and The Pew Charitable Trusts have since developed their own reports”

American Census historical Consolidated Federal Funds Report

https://www.census.gov/govs/cffr/

Internal Revenue Service Data Book, Table 5. (later Table 6) Gross Collections, by Type of Tax and State,

https://www.irs.gov/uac/soi-tax-stats-prior-year-irs-data-books

https://www.irs.gov/pub/irs-soi/14databk.pdf 369,193,162,000

https://www.irs.gov/pub/irs-soi/13databk.pdf 334,424,692, 000

https://www.irs.gov/pub/irs-soi/12databk.pdf 292,563,574, 000

https://www.irs.gov/pub/irs-soi/11databk.pdf 281,227,298,000

https://www.irs.gov/pub/irs-soi/10databk.pdf 273,353,106,000

https://www.irs.gov/pub/irs-soi/09databk.pdf 264,868,391,000

https://www.irs.gov/pub/irs-soi/08databkrevised.pdf 318,083,114,000

https://www.irs.gov/pub/irs-soi/07databkrevised.pdf 313,998,874,000

https://www.irs.gov/pub/irs-soi/06databkrevised.pdf 299,521,281,000

https://www.irs.gov/pub/irs-soi/05databk.pdf 265,783,657,000

https://www.irs.gov/pub/irs-soi/04databk.pdf 237,931,491,000

https://www.irs.gov/pub/irs-soi/03databk.pdf 227,610,714,000

https://www.irs.gov/pub/irs-soi/02databk.pdf 232,301,672 000

https://www.irs.gov/pub/irs-soi/01databk.pdf 264,873,059,000

https://www.irs.gov/pub/irs-soi/00databk.pdf 258,601,309,000

https://www.irs.gov/pub/irs-soi/99db07co.xls 216,716,031,000

https://www.irs.gov/uac/soi-tax-stats-irs-data-books-1998-to-2000

https://www.irs.gov/pub/irs-soi/98db07co.xls 198, 488, 957, 000

https://www.irs.gov/pub/irs-soi/97dbfullar.pdf 174,863,210,000

https://www.irs.gov/pub/irs-soi/96dbfullar.pdf 164,751,680,000

https://www.irs.gov/pub/irs-soi/95dbfullar.pdf 149,185,087,000

2014 369,193,162,000

2013 334,424,692,000

2012 292,563,574,000

2011 281,227,298,000

2010 273,353,106,000

2009 264,868,391,000

2008 318,083,114,000

2007 313,998,874,000

2006 299,521,281,000

2005 265,783,657,000

2004 237,931,491,000

2003 227,610,714,000

2002 232,301,672 000

2001 264,873,059,000

2000 258,601,309,000

1999 216,716,031,000

1998 198,488,957,000

1997 174,863,210,000

1996 164,751,680,000

1995 149,185,087,000

The Pew charitable trusts Federal Spending in the States 2005–2014

http://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2016/03/federal-spending-in-the-states-2005-to-2014

Ten-Year Historical Data (XLS)

http://www.pewtrusts.org/~/media/Assets/2016/03/Federal-Spending-Data-by-State-FY200514.xlsx

2005 $237,583,153,098

2006 $252,262,917,508

2007 $259,011,330,675

2008 $284,853,951,560

2009 $338,953,390,528

2010 $348,165,178,028

2011 $356,023,415,800

2012 $338,681,255,779

2013 $341,830,587,395

2014 $355,809,581,608

Consolidated Federal Funds Report

Table 1. Summary of Federal Government Expenditure by State and Outlying Area

https://www.census.gov/prod/2005pubs/cffr-04.pdf 232 387 000 000

https://www.census.gov/prod/2004pubs/03cffr.pdf 219 706 000 000

https://www.census.gov/prod/2003pubs/cffr02.pdf 206 401 000 000

https://www.census.gov/prod/2002pubs/01cffr.pdf 188 517 000 000

https://www.census.gov/prod/2001pubs/cffr-00.pdf 175 751 000 000

https://www.census.gov/prod/2000pubs/cffr-99.pdf 166 050 000 000

https://www.census.gov/prod/99pubs/cffr-98.pdf 161 571 000 000

https://www.census.gov/prod/3/98pubs/cffr-97.pdf 158 556 052 000

https://www.census.gov/prod/2/gov/cffr/cffr-96.pdf 157 630 855 000

https://www.census.gov/prod/2/gov/cffr/cffr95.pdf 153 835 178 000

2004 232 387 000 000

2003 219 706 000 000

2002 206 401 000 000

2001 188 517 000 000

2000 175 751 000 000

1999 166 050 000 000

1998 161 571 000 000

1997 158 556 052 000

1996 157 630 855 000

1995 153 835 178 000

However, we can take it even further

If CA removed the amount of money it spent on military to just what is needed for defense, not just for the years 2009–2012, but from 1995 to 2014, here is what the numbers look like:

I looked at total Federal spending on military in CA from 1995 to 2014, compared it to charts of spending patterns to fill in estimates in the years I could not find direct information and here are the numbers.

AMERICAN SPENDING ON MILITARY IN CALIFORNIA 1995–2014

• 2014 $60B
• 2013 estimate $60 probably higher
• 2012 estimate $60 probably higher
• 2011 estimate $60 probably higher
• 2010 estimate $60 probably higher
• 2009 $56.7
• 2008 estimate $54
• 2007 estimate $54
• 2006 estimate $50
• 2005 estimate $46
• 2004 estimate $42
• 2003 $38 ($4B growth/ per year)
• 2002 $34 ($4B growth/ per year)
• 2001 $30
• 2000 $29
• 1999 $29
• 1998 $30
• 1997 $32
• 1996 $32
• 1995 $34

I assumed that the CA preference for military spending would still be 1/3 of what America spends, and more in line with Canada — meaning that a separate CA would have spent 2/3 less than what America did on the military in CA for each year 1995–2014.

• 1995 negative 4,650,091,000 + $22.6 B = $18 B
• 1996 $7,120,825,000.00 + $21.3 B = $28.4 B
• 1997 $16,307,158,000.00 + $21.3 B = $37.6 B
• 1998 $36,917,957,000.00 + $20 B = $56.9 B
• 1999 $50,666,031,000 + $19.3 B = $70 B
• 2000 $82,850,309,000 + $19.3 B = $102.1 B
• 2001 $76,356,059,000 + $20 B = $96.3 B
• 2002 $25,900,672,000 + $22.6 B = $48.5 B
• 2003 $7,904,714,000 + $25.3 B =$33.2 B
• 2004 $5,544,491,000.00 + $28 B = $33.5 B
• 2005 $28,200,503,902.17 + $30.6 B = $58.8 B
• 2006 $47,258,363,492.23 + $33.3 B = $80.6 B
• 2007 $54,987,543,325.05 + $36 B = $91 B
• 2008 $33,229,162,439.61 + $36 B = $69.2 B
• 2009 negative $74,084,999,528 + $37.8 B (* different from above for exercise) = negative $36.3 B
• 2010 negative $74,812,072,028 + $40 B = negative $34.8 B
• 2011 negative 74,796,117,800 + $40 B = negative $34.8 B
• 2012 negative 46,117,681,779 + $40 B = negative $6.1 B
• 2013 negative 7,405,895,395 + $40 B = $32.6 B
• 2014 $13,383,580,392.45 + $40 B = $43.3 B

Assuming that ARRA was worth it and CA accepted that money but that CA spent money on par with its values and therefore only for a defense, and not a military empire abroad from 1995–2014

$900 B in extra money to America that CA did not get anything for in line with its values 1995–2014 (Income taxes and unnecessary military empire) — $112 B the actual amount of Federal assistance 2009–2012 = $788 Billion CA lost being part of America from 1995–2014

Legislative analyst 2014/15 2003 1994

Federal military contracts $33.8B $22.6B

Federal military salary $10.3B $10B $10B

Federal Spending in California: How Much Money Does the Federal Government Spend in California?

Legislative Analyst Office

Jan 18 2017

http://www.lao.ca.gov/Publications/Report/3531/1

• Veterans benefits (except education) $12.8 Billion paid in 2014–15
• Military wages and salaries $10.3 Billion paid in 2015
• Defense contracts (excludes universities) $33.8 Billion paid in 2013–14
• $57 Billion spent (excluding weapons research at university, and veteran tuition at a university) on average in 2013–2015

Impact of Defense Spending: A State-by-State Analysis

Robert Levinson, Sopen Shah

Bloomberg

Nov 17 2011

http://www.ct.gov/ecd/lib/ecd/futures/6._bloomberg_defense_spending.pdf

California $56.7 billion in 2009

California Institute Special Report: California’s Balance of Payments with the Federal Treasury, Fiscal Years 1981–2003

http://www.calinst.org/pubs/balance2003.htm

“Recent statistics estimate that California houses nearly 300,000 military and civilian DOD personnel, with a total payroll of approximately $10 billion.”

LAO Analysis of the 1995–96 Budget Bill

Federal Spending in California

http://www.lao.ca.gov/analysis_1996/p965-4.html

California $10B + $22.6B= $32.6B in 1994 (+Universities $3B + Veterans benefits)

“Military Procurement Still a Significant Factor. Federal procurement and research spending in California totaled about $31 billion in FFY 94 (excluding about $3 billion reflected in the state budget, primarily for contracts with the University of California). The bulk of federal procurement spending was for the military ($22.6 billion, or 77 percent). California accounted for 37 percent of U.S. defense procurement in FFY 94.”

“Federal Employees’ Salaries and Benefits. Spending to pay the salaries and benefits of federal employees in California totaled almost $20 billion in FFY 94. About half of this amount was for Department of Defense military and civilian employees.”

• 1995 $34
• 1996 $32
• 1997 $32
• 1998 $30
• 1999 $29
• 2000 $29
• 2001 $30
• 2002 $34
• 2003 $38

Trends in U.S. Military Spending

Council on Foreign Relations

Dinah Walker

Jul 15 2014

http://www.cfr.org/defense-budget/trends-us-military-spending/p28855

Conservatives deliver balanced budget ahead of election

Bill Curry and Barrie McKenna

OTTAWA — The Globe and Mail

Apr 21 2015

http://www.theglobeandmail.com/news/politics/budget-main/article24046411/

“The government said the additional money will enable Canada to deploy a “combat-capable military ready to serve at home and abroad.” Funding for the department of National Defence stood at $20-billion in 2014–15.”

…

Lastly, some critics mention California’s state debt and other financial
issues. First, $425 billion dollars in debt is nothing compared to
the $18 trillion dollars of debt held by the United States. Second,
in California, each citizen’s share of the debt is $10,918 while the
United States citizen’s share of the national debt is $203,250. Third, in
California the debt to GDP ratio is 17.7% while the United States debt
to GDP ratio is 101.6%. Fourth, California passes balanced budgets
and this year actually put some cash away into a rainy day fund. The
same could not be said of the United States which runs trade deficits,
borrows more money than it intends to ever repay, and does nothing
about it. Given these choices, clearly the better choice is California.