Government Revenues and Expenditures II

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Government Revenues and Expenditures II

Continuing Government Revenues and Expenditures. Concentrating on the different taxes and state and local revenues and expenditures.

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Lecture Note
Texas A&M University
Pols 207 - State & Local Goverment

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POLS 207 1st Edition Lecture 11 Outline of Last Lecture I. Government Revenues and Expenditures Outline of Current Lecture II. Revenues and Expenditures A. State, Local, Federal B. Taxes C. Texas Revenue and Expenditure Current Lecture:  2012 Federal Income Tax Rates  Texas has no personal income tax.  High earners have a lower tax burden according to federal tax burdens and bills.   Taxes  Property tax  Based on wealth  Flat rate  Tax incidence is regressive  Primary user is local government  Burden is older taxpayers  Easily predicted income for government  Only visible to property owners  Preferred by nonpartisan local governments  Sales tax  Recent tax and they are trying to earn more and more revenue from this.  Flat rate  Based on consumption  Tax incidence is regressive  Primary user is state government.  Hardest to predict how much states can gain from this – never sure how much people are going to buy.  Burden is on younger people more than older  Preferred by Republicans as a “use tax”  Least visible tax  Income tax  Primarily used by the federal government  Progressive or flat rate  Progressive, neutral or regressive incidence  Burden is on younger taxpayers  Partly visible  Preferred by Democrats as an “ability to pay” tax   State Government Revenue  Taxes  Federal grants  Fees and licenses  Interest o Texas used to have a lot of surplus from gas and oil. o Earn interest from these savings

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