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Paul Krugman has an article with that title, May 7, '02, on P. 177 in his book 'The Great Unraveling'. It says this:
The red states pay considerably less in taxes than the federal government spends within their borders, blue states pay considerably more than they get back. Blue America subsidizes red America to the tune of $90 billion a year. Within the red states, the metropolitan areas (the blue areas) pay the taxes, the rural regions get the subsidies.
New York's population is twice as large as the total farm population in the US. Montana received $9 per capita for firefighters from the Bush budget after 9/11, New York received 9 cents per capita.
When you do the math for red states without major cities, they got $1.75 in federal spending per every dollar they paid in federal taxes. The numbers are exactly the opposite for blue states. Add in hidden subsidies, like below-cost provision of water for irrigation, nearly free use of federal land for grazing...
Another link on this site showed some Palin gibberish where she talked about how she was raised independant and self reliant in the most American state. I remember hearing how Alaska was one of the most heavily subsidized states, a 'welfare queen' of a state, in terms of per capita funding by the feds.
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