ICYMI: Jersey Pays More to Federal Government Than Any Other State, Gets Least in Return

NORTH JERSEY — In case you missed it: a new WalletHub study revealed that New Jersey paid the most taxes to the federal government while receiving the least federal dollars in return. The study shows that Jersey families and small businesses contribute significantly more in federal taxes compared to Moocher States, which receive far more in federal funding for every dollar they pay in taxes.

According to the new WalletHub study, New Jersey was the least federally dependent state in the country and ranked 49th in return on federal taxes. This means Jersey families are getting ripped off, paying far more than they receive back from the federal government. 

“Yet another study confirms what we have known for too long: Jersey gets stuck paying retail and holding the bag for Red Moocher States that take far more in federal benefits than they pay in taxes. We’re literally paying for their roads, bridges, and fire departments — all at the cost of helping ours. Why should Red State Moochers get a free ride from Jersey’s federal tax dollars while we are left holding the bag with higher property taxes?” said Congressman Josh Gottheimer (NJ-5). “As my dad always said, if you don’t ask, you don’t get. That’s why I’ve fought so hard in Washington to claw more of our tax dollars back to Jersey and to restore the SALT deduction to help lower our property taxes and make life more affordable. This is not a Democrat or Republican issue — it’s about doing what’s right for hardworking Jersey families.”

Gottheimer is Fighting to Claw Back Federal Dollars from Moocher States & Boost Jersey’s ROI: 

• Gottheimer worked with Fifth District mayors, councils, first responders, and towns to help claw back $750 per household from Washington in 2021 alone — a 357% increase from what the District historically received.
  • Gottheimer’s office has also clawed back more than $116 million for constituents through casework.
• Since entering Congress, Gottheimer has clawed back more than $20 million through the LESO 1033 Program to help local law enforcement acquire vehicles, aircraft, and other surplus equipment from the federal government.
  • Gottheimer has clawed back $8 million in Assistance to Firefighters Grants (AFG), which equip and train firefighters to better respond to emergencies. 
• Gottheimer and his team have visited all 65 towns in the Fifth District to raise awareness of the availability of federal grant dollars, hosted numerous grant workshops and trainings, written congressional letters of support, and sent thousands of letters and scores of emails to local leaders. 

Gottheimer is Fighting to Lower Taxes and Make Life More Affordable

• As Co-Chair of the bipartisan SALT Caucus, Gottheimer has also long fought to restore the State and Local Tax (SALT) deduction to give middle-class families in New Jersey a much-needed tax cut.
  • In January, Gottheimer introduced the Securing Access to Lower Taxes by Ensuring (SALT) Deductibility Act, bipartisan legislation that would fully restore the deduction. 

The Moocher States receive far more in federal funding for every dollar paid in taxes. New Mexico gets $3.42, Kentucky gets $3.35, West Virginia receives $2.72, and Alaska gets $2.36. Meanwhile, New Jersey has historically received just 67 cents for every dollar it sends to Washington.

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