[quote=EconProf]A few factors explain that much-misunderstood statistic. On the revenue side, many big corporations have headquarters in CA and NY (although that is changing), plus our progressive income tax structure takes more from high earners in the bigger states with higher costs of living.
On the expenditure side, the rural states have more military bases, interstate highways, and farm subsidies (which go mainly to the wealthy in those states.[/quote]

EconProf: But, you’re forgetting one key thing: Never, ever let the facts get in the way of a good story!