Looking for an Even Break

The Northeastern and Midwestern sections of the U.S. once glowed with industrial and agricultural riches. In many places today, however, the two regions have the shabby look of an unsuccessful middle age. One reason: the Federal Government, through its spending and tax policies, has been persistently draining wealth from the areas and transferring it to the once neglected but now prospering South and Southwest.

In fiscal 1975, the Great Lakes states gave the Federal Government $62.2 billion in taxes and got back only $43.6 billion-- a loss of $18.6 billion. The Mid-Atlantic states of New York, New Jersey and Pennsylvania lost $10 billion in the exchange. New England came up $762 million short. By contrast, according to a study in the National Journal, the Southern states got back $11.5 billion more than they paid in taxes. California and the other Pacific states came out ahead by $7 billion, the Mountain states by $3.6 billion. One huge item of difference: federal spending for military bases and defense contracts.

Some politicians are beginning to press for revisions in federal spending policies. They reason that their states can no longer afford to pick up the tab, like patsy older brothers, to fatten other parts of the U.S. The issue is likely to prove a prickly one for the next President, particularly if he hails from a place like Georgia. Sensing its deepening distress if not decay, can anyone fault the Northeast and Midwest for wanting at least to break even?

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