Since California has the largest economy in the United States, it pays more federal taxes than it gets back, making it a donor state. According to Money Geek, US then uses that large sum to distribute the money to the states that need it most, which are mostly red states.
The controversy often begins here, but despite opposing arguments, the state should think morally and ethically about what this could mean for the entire country and the negative effects it would have on not just the entirety of the US, but California as well.
California has the fourth largest economy globally, and because of this, red states would find it difficult to survive without its aid. California’s federal taxes go towards many recipient state programs like Medicare or Medicaid, which wouldn’t be able to survive without this money. To compensate, America would either be forced to borrow more money, raise taxes or cut federal programs like disaster relief which California has recently benefitted from during the LA wildfires. If a donor state like California could stop donating federal taxes, other donor states including New York, Illinois and Massachusetts may be encouraged to withhold funds as well, worsening the crisis.
According to the Berkeley Economy and Society Initiative, red states tend to be cheaper to live in, and many people have nowhere else to go due to economic inequalities. It’s not ethical to, in a sense, punish them for living there when they have nowhere else to go. In recent years, more and more Americans are moving from expensive blue states to cheaper and less resource-filled red states. People who live in Republican-leaning states often suffer from lower education rates, high rates of poverty and worse health conditions.
According to The Centers for Disease Control and Prevention, states like California and New York, two of the richest and most Democratic-leaning states in the country, have a life expectancy rate of 77.9-79.9 years compared to poorer and more Republican-leaning states like Mississippi and Louisiana who have a life expectancy of only about 70.9-74.5 years.
If Californians were in the same position as the red states who rely on the donor state’s cash-in to help run their state’s economy, then we too would benefit from this system as well. If California was flipped from donor to recipient state, we would also appreciate the help with things like education, healthcare, economic stabilization and much more, which would help our community continue to thrive with the money being provided to us.
California should think morally and ethically about how this hypothetical boycott on federal taxes would negatively affect not only red states but the rest of the country too. Without California’s aid, the states who rely on our donor money will find themselves in trouble with things that are important for a healthy and working economy.
