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
“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
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.