One hundred dollars doesn’t go as far as it used to—especially in some states. According to The Tax Foundation:

The states where $100 is worth the least are the District of Columbia ($84.60), Hawaii ($85.32), New York ($86.66), New Jersey ($87.64), and California ($88.57). That same money goes the furthest in Mississippi ($115.74), Arkansas ($114.16), Missouri ($113.51), Alabama (113.51), and South Dakota ($113.38).

Another surprising finding when value adjustments are made:

For example, because taxes must be calculated based on nominal income, the average New York resident pays significantly more in taxes than the average Kansas resident. But the Kansas resident actually has higher purchasing power, meaning that they get to pay lower taxes despite getting to have a richer amount of consumption.

Furthermore, this affects means-tested federal welfare programs. A poor person in a high cost area – like Brooklyn or Queens – may be artificially boosted out of the range of income where they are eligible for welfare programs, despite still being very poor. At the same time, many people in low-price states may be eligible for welfare programs despite actually being much richer than they appear. If the same dollar value program is offered in New York City and rural South Dakota, it may be too small to help anyone in New York City, and yet so big it discourages work in South Dakota.

Adjustments such as these have significant implications for taxpayers. Commonsense tax policies along with proper adjustments for subsidizing social programs meant to be a safety net would go a long way toward helping people get back to work, earn a living, and keep more of their paychecks.