Chapter 5 Government Revenues and Expenditures Table 5 1 Tax and Non Tax Receipts as a Percentage of Gross Domestic Product by Year Norway Denmark Sweden Finland France Belgium Netherlands Austria Iceland Italy Euro area Hungary New Zealand Germany Portugal United Kingdom Greece Luxembourg Spain Canada Czech Republic Poland Ireland Korea Australia Slovak Republic Japan United States Switzerland 1990 1995 2000 2005 2009 56 8 55 5 54 6 53 9 53 4 63 1 51 2 53 2 48 9 47 0 45 5 48 7 47 7 49 6 47 4 48 9 38 3 45 9 45 5 41 5 44 9 46 1 44 3 44 2 43 0 43 0 41 4 40 5 40 5 39 5 39 1 38 5 38 2 35 4 35 3 34 6 34 0 33 9 33 4 33 3 57 7 55 5 60 7 55 3 50 1 49 1 46 1 49 6 43 6 45 3 46 2 43 6 41 2 46 4 40 2 41 0 43 0 43 7 38 1 44 1 37 9 38 1 36 3 29 3 36 1 38 5 31 4 35 8 35 2 54 2 56 2 58 0 55 2 48 9 47 5 47 2 50 2 39 8 45 1 45 6 47 6 44 9 45 1 38 4 38 8 36 7 42 1 38 0 43 2 40 5 43 3 39 1 24 6 34 5 45 0 31 4 33 8 33 0 57 3 57 4 55 9 53 2 50 5 49 3 44 9 48 1 47 1 43 8 44 9 42 1 45 0 43 6 41 6 41 4 37 8 41 7 39 4 40 8 41 0 39 0 35 4 31 9 36 3 35 3 31 7 33 1 34 7 48 7 41 7 34 5 40 1 30 9 42 1 38 7 43 0 40 1 23 1 33 7 34 0 32 8 30 2 Revenues and Expenditures 2007 taxes paid to all governments were 30 of personal income 12 650 2007 government spent 15 200 per person Redistributing Income User or Client pay user pays for any goods and services received Ability to pay govt uses taxes to fund programs such as education Private Goods and Public Goods Excludable only those who pay gets the goods Non rivaling everybody can use without denying to others Merit good goods which should not be denied to people who cannot pay for them like public education transportation healthcare etc TAX INCIDENCE PROGRESSIVE NEUTRAL REGRESSIVE TAX INCIDENCE NEUTRAL ALL PAY SAME PROPORTION OF INCOME IN TAXES PCT INCOME PAID IN TAXES HIGH LOW INCOME HIGH TAX INCIDENCE PROGRESSIVE WEALTHY PAY HIGHER PROPORTION OF INCOME IN TAXES PCT INCOME PAID IN TAXES HIGH LOW INCOME HIGH TAX INCIDENCE REGRESSIVE POOR PAY HIGHER PROPORTION OF INCOME IN TAXES PCT INCOME PAID IN TAXES HIGH LOW INCOME HIGH 2012 Federal Income Tax Rates Married Filing Jointly Rate Taxable Income 0 17 400 17 400 70 700 70 600 142 700 142 700 217 450 217 450 388 350 Over 388 350 Capital gains income 10 15 25 28 33 35 15 Income Federal Tax Bills and Tax Burdens Low Income Taxpayer Total income 30 000 Exemptions deductions 10 000 Income subject to earned income tax 20 000 Income subject to capital gains tax 0 Income tax bill 5 130 Income tax burden 17 High Income Taxpayer Total income 150 000 Exemptions deductions 60 000 Income subject to earned income tax 60 000 Income subject to capital gains tax 30 000 Income tax bill 15 630 Income tax burden 10 4 Income Tax Bills and Tax Burdens Low Income Taxpayer High Income Taxpayer 30 000 income 17 tax burden 150 000 income 10 tax burden Taxes Property tax flat rate tax Income tax Sales tax Severance tax Taxes Overview Property Tax Wealth Sales Tax Consumption Income Tax Income Local Governments Government assesses property determines tax bills and collects State Governments Retailer vendors report sales determine tax bills and collect taxes Federal Government Taxpayers report income determine tax bills and submit taxes Flat Regressive Lowest Progressive or Flat Progressive Neutral or Regressive Middle taxes Flat Regressive Highest owners Visible to property Least visible Partly visible Age Cohort Tax Older taxpayers Younger more than Younger taxpayers Preferred by nonpartisan local governments older Preferred by Republicans as a use tax Preferred by Democrats as an ability to pay tax Base Being Taxed Primary User Compliance Workload Tax Rate Tax Incidence Income Predictability Visibility Burden Politics STATE GOVERNMENT REVENUE TAXES FEDERAL GRANTS FEES AND LICENSES INTEREST SALES BORROWING GAMBLING LOTTERY Texas Total Revenue Estimated 2010 11 Thousands of Dollars Tax Collections Federal Income Licenses Fees Fines and Penalties Interest and Investment Income Lottery Proceeds Sales of Goods Services Settlements of Claims Land Income Contributions to Employee Benefits Other Revenue Total Net Revenue 78 988 126 55 128 019 47 1 32 9 13 571 825 6 562 744 3 073 751 986 727 1 017 683 1 740 459 342 6 615 947 167 685 623 8 1 3 9 1 8 0 6 0 6 1 0 0 0 3 9 Texas Comptroller of Public Accounts Biennial Revenue Estimate 2010 2011 January 2009 TEXAS TOTAL REVENUE State taxes Interest and investment income Licenses fees fines penalties Federal funds Texas Total Revenue 2012 2013 Biennium STATE TAXES 42 FEES INTEREST AND OTHER 21 FEDERAL FUNDS 38 Texas Comptroller of Public Accounts Biennial Revenue Estimate 2012 2013 January 2011 Texas Total Revenue Over Time Billions 2006 2007 Actual 2008 2009 Actual 2010 2011 Estimated 2012 2013 Estimated State Taxes Federal Funds Fees Interest Other State Taxes Federal Funds Fees Interest Other 70 5 49 1 30 0 48 32 20 79 1 57 1 35 1 47 33 20 77 7 76 3 35 3 41 40 19 76 9 70 2 38 0 42 38 21 Texas Comptroller of Public Accounts Biennial Revenue Estimate 2010 2011 November 2009 and Biennial Revenue Estimate 2012 2013 January 2011 Texas Tax Revenue Estimated 2010 11 Thousands of dollars Motor Vehicle Sales and Rental Taxes Sales Tax Motor Fuels Taxes Franchise Tax Insurance Taxes Natural Gas Tax Cigarette and Tobacco Taxes Alcoholic Beverage Taxes Oil Production and Regulation Taxes Inheritance Tax Utility Taxes Hotel Occupancy Tax Other Taxes Total Tax Collections 44 536 655 5 570 865 6 332 110 8 880 706 2 573 480 3 317 958 2 876 368 1 615 874 1 221 992 0 982 690 746 638 332 790 78 988 126 56 4 7 1 8 0 11 2 3 3 4 2 3 6 2 0 1 5 0 0 1 2 0 9 0 4 TEXAS TAX REVENUE Tobacco Sales tax Natural gas Insurance Franchise tax Motor fuels Motor vehicle Figure 5 1 Sales Tax and Income Tax 6 0 0 2 x a T e m o c n I n o e c n e d n e p e D e g a t n e c r e P 50 40 30 …
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