Ch 14: Public Finance Flashcards
What are fiscal policies?
Fiscal policies include taxes, government spending, and public debt.
What are some Texas fiscal issues?
Texas faces issues such as meeting higher demand for services with lower revenue, population diversity, and increases in population and poverty.
What are the Texas budget fiscal years?
The Texas budget for fiscal years 2020-2021 and 2022-2023 includes a $33 billion surplus from 2022-2023.
What are the categories of Texas spending policy?
Texas spending policy categories include General Revenue Funds, General Revenue-Dedicated Funds, Federal Funds, and Other Funds.
Why do governments provide services?
Governments provide services to ensure the availability of goods and services to the public.
What are public goods?
Public goods are characterized by nonexclusivity and nonexhaustion.
What are examples of public goods?
Examples of public goods include clean air and national defense.
What are the types of public goods?
Types of public goods include social goods, toll goods, and common-pool goods.
What is Texas’s reputation regarding services and taxes?
Texas is known as a ‘low service, low tax’ state.
What is the Texas sales tax ranking compared to other states?
Texas has a significant dependence on sales taxes to finance services.
What are the sources of Texas’s revenue?
Sources of Texas’s revenue include sales, property, transfers, permits and fees, franchise, courts and fines, and interest.
What are dedicated revenue sources for higher education in Texas?
Dedicated revenue sources include University funds, Texas University Fund (TUF), and Permanent University Fund (PUF).
What is the Permanent University Fund (PUF)?
The PUF has a history and purpose related to land grants and benefits eligible institutions.
What is the Permanent School Fund (PSF)?
The PSF has a history and purpose, governance structure, and plays a role in guaranteeing school district bonds.
What is the Texas sales tax rate?
The Texas sales tax applies to tangible personal property and has various exemptions.
What are the types of income tax systems?
Types of income tax systems include progressive, regressive, and flat/’fair’ tax systems.
What are progressive taxes in Texas?
Progressive taxes are defined by their structure and public opinion regarding income tax in Texas.
What are regressive taxes in Texas?
Regressive taxes are accepted by Texans and the government, impacting different income groups.
What are general business taxes in Texas?
General business taxes include sales taxes, franchise taxes, and payroll taxes.
What are ‘sin’ taxes in Texas?
‘Sin’ taxes are levied on alcoholic beverages, cigarettes/tobacco, and gambling.
What are unusual taxes and fees in Texas?
Texas collects various unusual or unique taxes and fees.
What are government priorities in spending?
Government spending prioritizes needs and meets federal mandates.
What is the relationship between taxation and government spending?
‘We tax so we can spend!’ reflects the relationship between taxation and government spending.
