Question

Here is a list of miscellaneous revenue sources received by governments. Categorize them as best as you can as (1) user charge, (2) license tax, (3) franchise fee or (4) Fiscal monopoly, using the standards established in the chapter. Explain your logic. What are the incentive impacts of each one of the revenue sources?

1. A fee for disposal of used ties.

2. A fee to reserve books at the library.

3. A charge for processing the arrest of a convicted drunk driver.

4. A charge for emergency services required when a driver causes an accident through negligence.

5. A charge by the fire department to pump water from basements flooded by a downpour.

6. A fee for the services of a probation officer.

7. A fee for reviewing a developer’s plans.

Answer 1

Collection from Different types of taxes are the main sources of REVENUE for the Goverenment. MORE AND MORE TAXES Increases the revenue Available for the welfare of the people of the country.

Also more taxes not only increases the tax revenue but also reduce the Inequality of Income and wealth in the country, so government must take effort to raise their revenue source.

-Here, fee for the used tie increased the source of revenue of the goverment and also disposal creat more and more production leads to more taxes.

-it is also a user charge when more and more people reserve the books in the Library help to raise revenue for the goverment to increases welfare for the society.

-Drunk driver punishment leads to raise licence tax for the next time after some time and also raise fiscal revenue for the govermment.

-A driver caught for negliance and result to accident may put question on the franvhise fees and action should to be taken and licence cancelled more tax on reveval.

-it is charge for using services to pump water from the basement during emergency services, hence it is user revenue for the government.

-A fee taken by the Probation officer is an revenue source for the government and categoried as fiscal revenue and reduce many pitfall of the economy.

-Reviewing for developers plan is an Licence fees given and help to raise government revenue which help to raise production and investment in the country.