Texas Nationalist Movement

Economy & Money

Does Texas send more money to Washington than it gets back?

It depends entirely on what you count, which is why this question is the most abused number in the whole debate. Measured one way, Texas looks like a net recipient. Measured another, it is a clear net contributor. Both come from reputable sources. The honest answer is to show you both and explain the gap.

Two reputable studies, opposite signs

Set them side by side. The Rockefeller Institute, measuring balance of payments, shows Texas as a net recipient of about $80 billion in 2023. USAFacts, measuring taxes paid against spending received, shows Texas as a net contributor, in its own words sending "$68.1 billion more to the federal government than it received." Two credible measures, on opposite sides of zero, tens of billions apart. When that happens, "does Texas send more than it gets back" stops being a fact and becomes a choice about what to count.

The whole gap is two things

The difference comes down to borrowed money and Texans' own benefits coming home. Both belong on this question, and once you see them, the picture clears up.

Borrowed money first

Washington spends about $1.37 for every $1 it collects. That 37-cent gap is not revenue Washington raised. It is money it borrowed, and the recipients' children will repay it with interest. That borrowing is the only reason most states look like they get back more than they pay in. And here is the number that matters: Texas's own ratio is $1.21 received for every $1 paid, below the U.S. average of $1.37. In a system rigged by borrowing to make every state look subsidized, Texas comes in under the line. Measured against the other states, that makes it a net contributor.

Texans' own benefits second

Strip the borrowing out, and most of what is left of the "money back" is Social Security and Medicare, benefits Texans pre-paid through a lifetime of payroll taxes. Counting a retiree's own Social Security check as proof that Texas cannot survive without Washington is the real sleight of hand. It is her money, on its way home. It was never conditional on Texas staying in the union, any more than her private pension is.

Which way does the real flow run?

Take out the borrowed dollars and the returning benefits, and the net recipient vanishes. What is left flows from Texas to Washington. Texans ship about $72 billion a year just in interest on a federal debt they never voted for, plus about $150 billion a year in fresh federal borrowing, and get back a dollar that loses value every year. By the honest measure, the dependency runs from Texas to Washington, not the other way.

The bottom line

By balance-of-payments accounting Texas looks like a recipient, by a taxes-versus-spending measure it is a contributor, and the gap between them is borrowed money plus Texans' own checks cycling home. Remove those, and Texas is carrying Washington, not the reverse.

Texas First. Texas Forever.

Texas should govern Texas. Be counted.

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