The theory that states like NY, NJ, and CA are subsidizing poor states has been debunked. When NY did their calculation, they included things like military bases as being contributions to poor states. Plus, as has been pointed out in this thread, older people are forced to leave NY/NJ for economic reasons and their social security/medicare payments are counted as contributions to the new state. How many public servants retire and take their pensions down south? They don't want to pay the exorbitant taxes here. Finally, replacing retirees with younger families increases the number of students in our schools which drive up costs.