Financing State Government Flashcards
political values
a set of beliefs about political processes and the role that government should play in our society.
public goods
goods or services characterized by the features of nonexcludability and nonrivalrous consumption; they are often provided by governments.
nonexcludability
the inability to practically prevent people from receiving or enjoying a good or service due to nonpayment.
nonrivalrous consumption
situation in which the use or enjoyment of a good or service by a person(s) does not diminish the availability of that good or service for others to use or enjoy.
collective benefit
goods that are provided with no charge because there is a broader public benefit associated with the good.
redistributive goods
those goods where a government takes money from one group of citizens and gives it to other citizens; welfare is a good example.
regulatory goods
good, activity, or resource that the government regulates to prevent overuse; an example is pumping water from a commonly owned aquifer.
tax capacity
a measure of the wealth of a state or its ability to raise revenues relative to all other states.
tax effort
a measure of how close a state comes to using its tax capacity
per capita tax
the total taxes raised in a state divided by the number of residents
tax exporting
the shifting of taxes to citizens in other states; a good example is Wyoming coal, which is exported to Texas to generate electricity.
consumer taxes
taxes that citizens pay when they buy goods and services; an example is sales tax.
benefit-based taxes
taxes for which there is a relationship between the amount paid in taxes and services received; motor fuel taxes are a good example.
ability to pay
taxes that are not based on the benefit received but the wealth, or ability to pay of an individual.
regressive taxes
taxes that take a higher percentage of income from low-income persons.
