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37 Cards in this Set
- Front
- Back
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revenue |
income received by the government |
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expenditure |
goods and services purchased or provided with government funds |
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National Tax and Non-Tax Receipts as a Percentage of GDP by year |
cant tell what the tax of each country is bc of different GDPs |
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who contributes the most federal income money? |
individuals with over 40% of Federal Tax Revenue |
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How do states gain revenue? |
Taxes Federal Grants Fees and licenses interest on investments Direct sales borrowing gambling/lottery |
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what are the sources of revenue of local and state governments? |
federal support increases, state and local taxes, Other State and local sources |
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Texas Projected Flow of Major Revenues |
Taxes, Federal Income, fees, interest and other income -->total state revenue -->Dedicated Revenue, General revenue, or Reserve for ESF (Economic stabilization Fund "Rainy Day Fund") |
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Dedicated Revenue |
Funds that must go for pre-specified purposes; includes all Federal income |
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General Revenue |
Funds available to legislature for to spend, after ESF set aside |
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What is ESF saved for |
Rainy Day fund is saved and used when really needed, also could be used to pay back stuff from the years before. |
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Texas Revenue sources compared to avg state revenue sources |
Federal income and taxes is nearly the same in 2012-2013 The avg state has a lot of own revenue and Federal Government is only 1/4 of its revenue |
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highest tax collected in texas |
sales by far |
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Different types of taxes |
Income tax sales tax property tax severance tax applies to minerals "severed" from the land "Tax shifting" gains revenue for a state or locality by taxing people or entities outside of that specific location |
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income tax brackets |
there are brackets for income
i.e. 0-17000 pays 10% tax, and the rate increases as income increases. however, higher income families still have to pay their way through the lower brackets to get to where they are. |
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incidence of tax rates |
progressive |
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incidence of tax bills |
progressive |
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tax incidence |
regressive |
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Sales Tax |
States share in TX= 6.25% Local govt ad their own shares on top City Sales Tax Rate = 1.5% County Sales Tax Rate = 0.5%
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why is sales tax seen as regressive |
studies show that the wealthy still buy the same stuff as the poor and are paying a smaller percentage of tax compared |
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property tax |
base: property subject to taxation rate: fixed (local govt determines) incidence: Regressive (but not as much as sales tax) because the rate is flat and becomes a smaller % of the wealthy income than the poor, but the wealthy dont buy property equally as proportional to their income as the poor do revenue predictability: high goes with how the economy is going at the moment TX depends high on property tax (2009) |
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distribution of wealth in US |
top 20% actually have a good 75% of the wealth |
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state and local tax burdens by family income |
most states have higher burden for income groups of 0-25000 than 150000 |
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state, local and federal taxes by income group |
state and local taxes are pretty regressive and the federal tax is progressive but is the federal tax progressive?? |
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state and local tax regressivity |
state and local taxes are more regressive now than before |
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what do states spend the most on? |
education |
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expenditures per capita in the US |
The southern states tend to spend less than the rest of the country Wyoming and Alaska are the highest TX is low in the groups of expenditures but are proud of it |
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Borrowing in governments |
all governments borrow money in a strategic way |
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limitations on Texas state taxing, spending, and debt |
pay as you go growth limits on some appropriations welfare spending limit debt limits new debt cant exceed 5% of annual amount in that capital fund for previous 3 years income tax prohibited if approved, must be for education |
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why do governments borrow money |
to achieve equity for their citizens in capital goods |
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pay as you go |
paying for something before it becomes in use with the current revenues paying for a building during construction period some pay, but do not get others get, but do not pay |
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pay as you use |
something funded by bonds sold in a time period those who get, pay those who pay, get |
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debt is linked to what? |
capital projects financed through borrowing, not other revenue capital budget systems usually deals with borrowing |
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Federal govt budget policy |
they dont have a capital budget so not a lot of borrowing
they have a unitary budget system |
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the two types of budget systems in states and local govt
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capital budgets pay for major capital, or investments, spending operating budget pay for day-to-day expenses not much borrowing |
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TX in debt rankings per capita |
State level is 10th
local level is 2nd combined is 5th so Texas is pretty high in per capita debt in the US |
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when local has high debts
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state begins to point fingers and saying that local govts are taking unnecessary risks for their residents local sees that what they need is necessary
local also sees that the interest rates are too low at present time |
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why local govts have few options about their debt |
state caps local sales tax property taxes are difficult to raise |
