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Press Release: Foster Announces Bipartisan Payer State Caucus

Jul 18, 2017
Press Release

WASHINGTON, DC – Today, Congressman Bill Foster announced the formation of the bipartisan Payer State Caucus for the 115th Congress. Congressman Leonard Lance (R-NJ) joined the Caucus as Co-Chair to call attention to the discrepancy in revenue formulas that causes some states to lose federal tax revenue every year.

“Each year, Illinois loses $40 billion each year because Illinois pays far more in federal taxes than we receive in federal spending. This problem exacerbates the fiscal crisis in Illinois, including under-investment in education, infrastructure, and disaster assistance.” Foster said. “This caucus allows Members of Congress to come together regardless of their Party affiliation to examine the ways we can make sure the American people are better served. I look forward to working with my colleague from New Jersey on this important issue.”

“For far too long Garden State taxpayers have unfairly subsidized Washington’s addiction to wasteful over-spending.  New Jersey is one of just a handful of ‘giver states’ that pay more in federal taxes than they receive in federal spending.  In fact, New Jersey is dead last with a rate of return of just $0.77 for every federal tax dollar sent to Washington,” Lance said.  “The Congressional Payer State Caucus seeks to examine this disparity and recommend legislation to ensure that donor states like New Jersey keep more of their hard-earned tax dollars at home.”

In 2015, Congressman Foster introduced the Payer State Transparency Act to calculate the federal tax burden of each state every calendar year.