Ch 14: Public Finance

Question 1

What are fiscal policies?

Answer 1

Fiscal policies include taxes, government spending, and public debt.

Question 2

What are some Texas fiscal issues?

Answer 2

Texas faces issues such as meeting higher demand for services with lower revenue, population diversity, and increases in population and poverty.

Question 3

What are the Texas budget fiscal years?

Answer 3

The Texas budget for fiscal years 2020-2021 and 2022-2023 includes a $33 billion surplus from 2022-2023.

Question 4

What are the categories of Texas spending policy?

Answer 4

Texas spending policy categories include General Revenue Funds, General Revenue-Dedicated Funds, Federal Funds, and Other Funds.

Question 5

Why do governments provide services?

Answer 5

Governments provide services to ensure the availability of goods and services to the public.

Question 6

What are public goods?

Answer 6

Public goods are characterized by nonexclusivity and nonexhaustion.

Question 7

What are examples of public goods?

Answer 7

Examples of public goods include clean air and national defense.

Question 8

What are the types of public goods?

Answer 8

Types of public goods include social goods, toll goods, and common-pool goods.

Question 9

What is Texas’s reputation regarding services and taxes?

Answer 9

Texas is known as a ‘low service, low tax’ state.

Question 10

What is the Texas sales tax ranking compared to other states?

Answer 10

Texas has a significant dependence on sales taxes to finance services.

Question 11

What are the sources of Texas’s revenue?

Answer 11

Sources of Texas’s revenue include sales, property, transfers, permits and fees, franchise, courts and fines, and interest.

Question 12

What are dedicated revenue sources for higher education in Texas?

Answer 12

Dedicated revenue sources include University funds, Texas University Fund (TUF), and Permanent University Fund (PUF).

Question 13

What is the Permanent University Fund (PUF)?

Answer 13

The PUF has a history and purpose related to land grants and benefits eligible institutions.

Question 14

What is the Permanent School Fund (PSF)?

Answer 14

The PSF has a history and purpose, governance structure, and plays a role in guaranteeing school district bonds.

Question 15

What is the Texas sales tax rate?

Answer 15

The Texas sales tax applies to tangible personal property and has various exemptions.

Question 16

What are the types of income tax systems?

Answer 16

Types of income tax systems include progressive, regressive, and flat/’fair’ tax systems.

Question 17

What are progressive taxes in Texas?

Answer 17

Progressive taxes are defined by their structure and public opinion regarding income tax in Texas.

Question 18

What are regressive taxes in Texas?

Answer 18

Regressive taxes are accepted by Texans and the government, impacting different income groups.

Question 19

What are general business taxes in Texas?

Answer 19

General business taxes include sales taxes, franchise taxes, and payroll taxes.

Question 20

What are ‘sin’ taxes in Texas?

Answer 20

‘Sin’ taxes are levied on alcoholic beverages, cigarettes/tobacco, and gambling.

Question 21

What are unusual taxes and fees in Texas?

Answer 21

Texas collects various unusual or unique taxes and fees.

Question 22

What are government priorities in spending?

Answer 22

Government spending prioritizes needs and meets federal mandates.

Question 23

What is the relationship between taxation and government spending?

Answer 23

‘We tax so we can spend!’ reflects the relationship between taxation and government spending.