In: Economics
The revenue that is brought in by federal, state and local all have a similar theme. That similar theme is taxes, the only difference is where the people are getting taxed from. For federal revenue it comes from payroll taxes, corporation income taxes and excise taxes. For state level the revenue will come from income and sales taxes. Lastly, local governments can get their revenue from property taxes and sales taxes. The different things that Federal, State and Local governments spend their money on are all going to be different as well. For Federal purposes they spend the revenue on retirements, national defense and then they will also use it to pay down debts that the country accrues. State revenue is spent on education, city maintenance and the overall wellbeing of the people. State and local revenue tends to be spent on similar things, the local government is going to focus on their towns and the needs that the community has. Income taxes and property taxes have gone up and the money from these sources or more heavily depended on than they have been in the past.
Reply to at least 2 of your classmates. Be constructive and professional in your responses.
The government budget is a matter of national importance. It is
this framework that is used to decide how much to tax, who tax and
how to spend the tax revenue. Tax revenue is the primary source of
income of the government. This revenue is spent on the well-being
of the people in the nation.
In a Federal structure like the one mentioned above, it is seen
that there are three proper points of tax collection. The tax
collection system can work in either one of the following ways
-
Each of these have specific descriptions of projects that the fund, as is given in the paragraph above. The rates of taxation depend on the discretion of the government. Tax is not only a source of revenue of the government, it is also an important fiscal policy tool for the government. In order to correct the effect of the business cycles, it is important for the government to determine the appropriate tax rate to control the consumption of the people.