take a look at the budgets at the city, state and federal levels. Name 2 key...

take a look at the budgets at the city, state and federal levels. Name 2 key differences between the two. What would you add, change, and or delete?

Solutions

Expert Solution

The two key differences between local/state and federal budgets are given below-

State and local governments are required to balance their budget. They have no way to borrow, unlike central government which can borrow to cover its deficit. So, central budget can have a deficit while local/state government cant.
The second main difference is in the way revenue is collected. Although the federal government collects the most tax revenue, state and local governments have a greater range of revenue options for funding their budgets. The federal government relies mainly on income, capital gains, excise and Social Security taxes for revenue. State and local governments collect sales taxes, fuel taxes, property taxes and fees from special licenses, such as driver's licenses. In addition, many state and local governments collect revenues from state lotteries, alcohol and tobacco taxes, and in some cases, casino gambling.

What I would change is that I would make fuel tax as a shared tax. Since fuel, as a resource, is property of both state and federal government. When imported, the deficit is also being borne by the federal government. So it makes sense that fuel tax is divided between local/state and federal government.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

When reading research what are key elements that you will look for to decide the levels...

When reading research what are key elements that you will look for to decide the levels of measurement for the variables?

Give an example of a health policy at the local, state and federal levels.

SQL statmen: List the first name, the last name, the address, the city, the state, the...

SQL statmen: List the first name, the last name, the address, the city, the state, the branchNo, and the email of agents working in the branch B005 and having email addresses ending with extensions different from .com.

1) Create a table “college” that has as attributes name, city name, state/province/region name, country name,...

1) Create a table “college” that has as attributes name, city name, state/province/region name, country name, and year in which the college was established as well as an ID as primary key. Insert records for 5 colleges of your choice, including one or more you have attended. 2) Create a table “student” that has as attributes first name, last names, and college ID for students, and insert the names of yourself and friends who attended one or more colleges together...

How should the federal government assess the hazards and risks at the state and local levels...

How should the federal government assess the hazards and risks at the state and local levels of government (natural and man-made disasters)? Should the federal government have a role in this area? Kettl and Sylves discuss the expanding role of the federal government in this area of emergency management. Is this a role for the federal government to undertake or should it concentrate on the hazards and risks assessment of terrorism aspect of emergency management? What policy changes or solution...

State and federal governments actively support education at the primary, secondary, and collegiate levels. But they...

State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate education at the primary and secondary levels, while merely providing subsidies and loan guarantees at the collegiate level. Of the key rationales for public provision of education described in Section 11.1 of the text, which do you think underpins this differential treatment?

In spite of the passing equal pay laws at federal and state levels. Why do you...

In spite of the passing equal pay laws at federal and state levels. Why do you think inequality in pay continues to exist between men and women in the workplace?

What are the roles that different levels of government play in defining crime? Include federal, state,...

What are the roles that different levels of government play in defining crime? Include federal, state, and local governments. Include the types of crimes each government level defines.

Company: Citigroup Company analysis: 1)Full company name; home office (city, state, country); name of CEO and...

Company: Citigroup Company analysis: 1)Full company name; home office (city, state, country); name of CEO and name of President or indicate if same; stock symbol; stock exchange where stock is traded; closing stock price as of the Friday before the date the project is due. 2)History of the company. Where was the company founded and who was/were the founders? Indicate any major events in the company’s history like mergers or acquisitions? 3)What primary industry does this company compete in and...

Explain how local public schools are funded and how other levels of government (state, federal) contribute...

Explain how local public schools are funded and how other levels of government (state, federal) contribute to K-12 educational funding. In your opinion, is this a fair system? If not, please state how this can be changed?

Subjects