The average federal tax bill in 1994 will be $4,701 per person, seven percent higher than 1993 and 72 percent greater than 10 years ago. The federal tax burden differs considerably from state to state because of variations in income levels as well as other factors such as different consumption levels of federally taxed goods like gasoline.

• Connecticut residents will pay the most, $7,105 per capita, followed by New Jersey residents at $6,680.
• Mississippi will pay the least, $2,975 per capita, with Utah the second lowest at $3,350.

When federal tax collections are compared with federal spending, some states send far more to the federal Treasury than they get in return, while some states clearly come out far ahead. After adjusting to account for the part of federal spending that is financed by borrowing, a comparison of per capita taxes and expenditures in 1993 shows:

• New Mexico received $1.96 in federal spending for every tax dollar paid, Mississippi received $1.63 and West Virginia received $1.45.

• At the other end of the scale, New Jersey received only 67 cents in federal spending for every tax dollar paid, and Connecticut, Delaware and New Hampshire each received only 69 cents.

The ratio of spending to taxes has remained at relatively the same level for most states for the past decade, but there were some notable exceptions. Comparing 1993 to 1983:

• Louisiana rose from 84 cents of spending per dollar of taxes to $1.26, Oklahoma from 80 cents to $1.21 and West Virginia from $1.05 to $1.45.

• Both Connecticut and New Hampshire dropped from 93 cents of spending per dollar of taxes to 69 cents.

Source: Chris R. Edwards, "1994 Federal Tax Burden by State: Federal Fiscal Operations Create Winners and Losers," Special Report No. 34, May 1994, Tax Foundation, 1250 H Street, NW, Suite 750, Washington, DC 20005, (202) 783-2760.

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