Exam 11: Public Finance

Overall,the tax system in Texas is generally considered to be regressive,which means that

Explain the strengths and weaknesses of the budgetary process in Texas.

What is the argument commonly used by supporters of a state income tax?

Texas is known as a high tax state; because of this,it is a good place to do business.

The Legislative Budget Board's draft budget,NOT the governor's budget,is the one voted upon by the legislature.

The Permanent School Fund distributes money to school districts across the state based on what two factors?

With a progressive income tax,people with lower income pay a lower tax rate than people with higher income.

A ________ is a tax on the market value of oil produced in the state.

Poor homeowners and renters generally pay more of their income in property tax than do the wealthy.

Federal matching funds are

Identify four types of taxes in Texas and the regressive aspects of the Texas tax system.

Prior to 2003,tuition rates for public colleges and universities in Texas tended to be

The State Highway Fund comes from what source(s)?

________ is a nondedicated revenue account and is the state's primary operating fund.

Who pays the greatest portion of their income in property taxes?

Because the budget process in Texas operates on a two-year cycle,Texas legislators have adequate time to gather information,carefully analyze it,and craft a detailed and accurate state budget.

There is a high sales tax in Texas of ________ percent.

The Rainy Day Fund is more properly known as the National Research University Fund.

In addition to the state sales tax of 6.25 percent,county,city,and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.