Foster Re-Introduces Bipartisan Payer State Transparency Act
Washington, D.C. - To highlight the “Payer State” problem, Congressman Bill Foster (D-IL) and Congressman Van Taylor (R-TX) introduced the Payer State Transparency Act of 2021. In a typical year, Illinois taxpayers lose roughly $20 billion because they pay more in federal taxes then they get back in federal spending. In fact, according to figures compiled by the Pew Charitable Trust, Illinois receives the sixth smallest amount of federal spending per-capita in the country.
The Payer State Transparency Act of 2021 would help shed light on this problem by requiring the Office of Management and Budget, in conjunction with the Council of Economic Advisors and the Treasury Department, to produce annual assessments of net economic effect on individual states of all federal spending programs, and compare these figures against a model of state tax burdens developed by the Bureau of Economic Analysis.
“As a businessman who co-founded a manufacturing company, I understand the financial drag that federal Payer State policies put on companies that are committed to keeping good jobs in Illinois,” said Foster. “I also recognize the burden the Payer State problem places on middle-class families here in Illinois, and the tragic underinvestment in physical and human capital that it drives. That’s why I’ve introduced bipartisan legislation to help us gain a better understanding of the problem and find ways to make sure Illinois taxpayers are getting their fair share of federal resources.”
The Payer State Transparency Act is co-sponsored by Lee Zeldin (R-NY), Cheri Bustos (D-IL), Josh Gottheimer (D-NJ), Thomas Suozzi (D-NY), Colin Allred (D-TX), Louie Gohmert (R-TX), and Jan Schakowsky (D-IL).
Text of the legislation is available here.