Question 1

Evaluating tax options on the basis of political accountability means

Accepted Answer

A) using a procedure known as bracket creep to ensure that taxpayers are aware of their liabilities. 
B) considering the ease with which the tax can be administered by a government using standard accounting methods. 
C) considering the degree to which the effects of a particular tax are made public by political decision makers. 
D) adjusting taxes as the economy heats up or cools down. 
A) using a procedure known as bracket creep to ensure that taxpayers are aware of their liabilities. 
B) considering the ease with which the tax can be administered by a government using standard accounting methods. 
C) considering the degree to which the effects of a particular tax are made public by political decision makers. 
D) adjusting taxes as the economy heats up or cools down.

Question 2

What are the major services for which state and local governments spend the most money? What trends have taken place over the past ten years in terms of areas where spending is growing faster and slower than the average? What factors are influencing these trends? How does this impact taxpayers' willingness to raise or sustain revenues to pay for those programs and services?

Accepted Answer

The major services for which state and l

Question 3

A regressive tax places a greater burden on the affluent because the tax rate falls as taxable income rises.

Accepted Answer

A) True 
 B)False

Question 4

Current procedures for estimating state and local revenues as a basis for budget planning

Accepted Answer

A) are unreliable, given the lack of data. 
B) are free of error now that highly reliable computers are available. 
C) rely on simply extrapolating from past trends. 
D) rely more and more on sophisticated econometric models made possible by computer technology. 
A) are unreliable, given the lack of data. 
B) are free of error now that highly reliable computers are available. 
C) rely on simply extrapolating from past trends. 
D) rely more and more on sophisticated econometric models made possible by computer technology.

Question 5

Why have lotteries and legalized gambling gained favor in terms of sources of revenue? Describe the advantages and disadvantages of such a revenue source. Discuss and defend your position on whether states and localities should rely on such sources.

Accepted Answer

Lotteries and legalized gambling have ga

Question 6

​Rapid and severe deterioration in revenues slammed state and local governments during the Great Recession.

Accepted Answer

A) True 
 B)False

Question 7

Severance taxes, as a source of state revenues, are popular

Accepted Answer

A) in states that have a lot of natural resources. They help keep income, property, and sales taxes relatively low and eventually those taxes are paid mostly by out-of-state users. 
B) with resource-rich states, but the rates are set by the national government. 
C) in states like Virginia and Washington, but they are unused in Alaska and Wyoming because the price of natural resources is constantly changing due to market conditions. 
D) because they exempt natives (in-staters)from the tax. 
A) in states that have a lot of natural resources. They help keep income, property, and sales taxes relatively low and eventually those taxes are paid mostly by out-of-state users. 
B) with resource-rich states, but the rates are set by the national government. 
C) in states like Virginia and Washington, but they are unused in Alaska and Wyoming because the price of natural resources is constantly changing due to market conditions. 
D) because they exempt natives (in-staters)from the tax.

Question 8

Local governments can levy taxes and fees, incur debt, and spend money without state government authorization.

Accepted Answer

A) True 
 B)False

Question 9

Today, property taxes

Accepted Answer

A) are the largest source of state government revenues. 
B) represent the largest component of New Hampshire's tax revenues and the smallest part of those revenues in Alaska. 
C) are easier to collect because the property never moves and its value seldom changes. 
D) are the largest source of local government revenues. 
A) are the largest source of state government revenues. 
B) represent the largest component of New Hampshire's tax revenues and the smallest part of those revenues in Alaska. 
C) are easier to collect because the property never moves and its value seldom changes. 
D) are the largest source of local government revenues.

Question 10

Which of the following bonds is issued to fund the construction of a facility to be used by a private firm?

Accepted Answer

A) General-obligation bond 
B) Revenue bond 
C) Industrial development bond 
D) Excise bond 
A) General-obligation bond 
B) Revenue bond 
C) Industrial development bond 
D) Excise bond

Question 11

The general sales tax is a good example of a progressive tax.

Accepted Answer

A) True 
 B)False

Question 12

Fiscal stress refers to financial pressures placed on a government from factors such as revenue shortfalls, taxing, and spending limitations.

Accepted Answer

A) True 
 B)False

Question 13

Taxing Internet sales

Accepted Answer

A) remains insignificant to most states because it is too complicated for the stores to keep track of all 50 state laws on sales taxes. Sales on the Internet have been declining significantly in recent years. 
B) would generate close to $5 billion a year of additional sales tax revenues through online catalogue sales and perhaps $23 billion from Internet sales overall. 
C) has been a significant source of revenue since 1998 for forty-six states after the U.S. Supreme Court allowed North Dakota to become the first state to impose a tax on Internet sales. 
D) may never be a source of revenue for the states because the U.S. Congress passed a law that forbids state and local government from ever imposing a tax on sales transactions that occur on the Internet. 
A) remains insignificant to most states because it is too complicated for the stores to keep track of all 50 state laws on sales taxes. Sales on the Internet have been declining significantly in recent years. 
B) would generate close to $5 billion a year of additional sales tax revenues through online catalogue sales and perhaps $23 billion from Internet sales overall. 
C) has been a significant source of revenue since 1998 for forty-six states after the U.S. Supreme Court allowed North Dakota to become the first state to impose a tax on Internet sales. 
D) may never be a source of revenue for the states because the U.S. Congress passed a law that forbids state and local government from ever imposing a tax on sales transactions that occur on the Internet.

Question 14

Financial pressure on a government from factors such as revenue shortfalls and taxing and spending limitations is generally referred to as

Accepted Answer

A) monetary stress. 
B) fiscal stress. 
C) TELs. 
D) pass-through spending. 
A) monetary stress. 
B) fiscal stress. 
C) TELs. 
D) pass-through spending.

Question 15

In 2013, Congress passed the Marketplace Fairness Act, which placed a moratorium on taxing Internet transactions. The moratorium has now been lifted, and states are free to tax all items sold on the Internet under each state's sales tax rules.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Government is always a reliable fiscal partner with the states.

Accepted Answer

A) True 
 B)False

Question 17

State lotteries are a fairly recent phenomenon and came about as a response to the fiscal stress of the 1970s and 1980s.

Accepted Answer

A) True 
 B)False

Question 18

Poor states, with low tax capacity, are forced to

Accepted Answer

A) tax at a lower rate than wealthy states because there is less demand for basic services. 
B) tax at the same rate as wealthy states because tax capacity is not related to tax effort. 
C) exert less tax effort than wealthy states. 
D) tax at high rates just to pull in enough money to pay for basic governmental functions. 
A) tax at a lower rate than wealthy states because there is less demand for basic services. 
B) tax at the same rate as wealthy states because tax capacity is not related to tax effort. 
C) exert less tax effort than wealthy states. 
D) tax at high rates just to pull in enough money to pay for basic governmental functions.

Question 19

Tax effort depends largely on the scope and level of services desired by the citizens of that state or municipality.

Accepted Answer

A) True 
 B)False

Question 20

States can improve the yield of the sales tax by broadening the base to include services and thus make the tax more equitable as upper-income individuals are heavier users of services. Which of the following examples is not an example of taxing a service?

Accepted Answer

A) A tax when you repair of your automobile 
B) A tax when getting your hair cut 
C) A tax on the cost of having a tattoo applied to your arm 
D) A tax on the cost of buying cigarettes from a convenience store 
A) A tax when you repair of your automobile 
B) A tax when getting your hair cut 
C) A tax on the cost of having a tattoo applied to your arm 
D) A tax on the cost of buying cigarettes from a convenience store

Evaluating tax options on the basis of political accountability means

A regressive tax places a greater burden on the affluent because the tax rate falls as taxable income rises.

Current procedures for estimating state and local revenues as a basis for budget planning

Why have lotteries and legalized gambling gained favor in terms of sources of revenue? Describe the advantages and disadvantages of such a revenue source. Discuss and defend your position on whether states and localities should rely on such sources.

Rapid and severe deterioration in revenues slammed state and local governments during the Great Recession.

Severance taxes, as a source of state revenues, are popular

Local governments can levy taxes and fees, incur debt, and spend money without state government authorization.

Today, property taxes

Which of the following bonds is issued to fund the construction of a facility to be used by a private firm?

The general sales tax is a good example of a progressive tax.

Fiscal stress refers to financial pressures placed on a government from factors such as revenue shortfalls, taxing, and spending limitations.

Taxing Internet sales

Financial pressure on a government from factors such as revenue shortfalls and taxing and spending limitations is generally referred to as

In 2013, Congress passed the Marketplace Fairness Act, which placed a moratorium on taxing Internet transactions. The moratorium has now been lifted, and states are free to tax all items sold on the Internet under each state's sales tax rules.

The Federal Government is always a reliable fiscal partner with the states.

State lotteries are a fairly recent phenomenon and came about as a response to the fiscal stress of the 1970s and 1980s.

Poor states, with low tax capacity, are forced to

Tax effort depends largely on the scope and level of services desired by the citizens of that state or municipality.

States can improve the yield of the sales tax by broadening the base to include services and thus make the tax more equitable as upper-income individuals are heavier users of services. Which of the following examples is not an example of taxing a service?

New Directions for State and Local Governments

Federalism and the States: Sorting Out Roles and Responsibilities

State Constitutions: the Fundamental Rules of State Government

Citizen Participation and Elections

Political Parties, Interest Groups, and Campaigns

State Legislatures

Governors: Power, Politics and Executive Leadership

Public Administration: Budgeting and Service Delivery

The Judiciary: Independence Vs Accountability

The Structure of Local Government

Local Leadership and Governance

State Local Relations

Economic Development

Education Policy: Reading, Writing and Reform

Criminal Justice: Cops and Corrections

Social Welfare and Health Care Policy: Addressing Poverty and Sickness

Environmental Policy

Filters

Exam 13: Taxing and Spending

Evaluating tax options on the basis of political accountability means

A regressive tax places a greater burden on the affluent because the tax rate falls as taxable income rises.

Current procedures for estimating state and local revenues as a basis for budget planning

Why have lotteries and legalized gambling gained favor in terms of sources of revenue? Describe the advantages and disadvantages of such a revenue source. Discuss and defend your position on whether states and localities should rely on such sources.

​Rapid and severe deterioration in revenues slammed state and local governments during the Great Recession.

Severance taxes, as a source of state revenues, are popular

Local governments can levy taxes and fees, incur debt, and spend money without state government authorization.

Today, property taxes

Which of the following bonds is issued to fund the construction of a facility to be used by a private firm?

The general sales tax is a good example of a progressive tax.

Fiscal stress refers to financial pressures placed on a government from factors such as revenue shortfalls, taxing, and spending limitations.

Taxing Internet sales

Financial pressure on a government from factors such as revenue shortfalls and taxing and spending limitations is generally referred to as

In 2013, Congress passed the Marketplace Fairness Act, which placed a moratorium on taxing Internet transactions. The moratorium has now been lifted, and states are free to tax all items sold on the Internet under each state's sales tax rules.

The Federal Government is always a reliable fiscal partner with the states.

State lotteries are a fairly recent phenomenon and came about as a response to the fiscal stress of the 1970s and 1980s.

Poor states, with low tax capacity, are forced to

Tax effort depends largely on the scope and level of services desired by the citizens of that state or municipality.

States can improve the yield of the sales tax by broadening the base to include services and thus make the tax more equitable as upper-income individuals are heavier users of services. Which of the following examples is not an example of taxing a service?

New Directions for State and Local Governments

Federalism and the States: Sorting Out Roles and Responsibilities

State Constitutions: the Fundamental Rules of State Government

Citizen Participation and Elections

Political Parties, Interest Groups, and Campaigns

State Legislatures

Governors: Power, Politics and Executive Leadership

Public Administration: Budgeting and Service Delivery

The Judiciary: Independence Vs Accountability

The Structure of Local Government

Local Leadership and Governance

State Local Relations

Economic Development

Education Policy: Reading, Writing and Reform

Criminal Justice: Cops and Corrections

Social Welfare and Health Care Policy: Addressing Poverty and Sickness

Environmental Policy

Filters

Rapid and severe deterioration in revenues slammed state and local governments during the Great Recession.