GOVT 2306: Texas Government chapter 13

What portion of the Texas state budget comes from the federal government?

One third

About 63% of the money that Texas receives from the federal government is spent on

Health and Human services

For fiscal years 2015-2016, the Texas state budget was about $ _________ billion.

209

A good is said to be nonexcludable if:

You cannot practically prevent people from receiving it

If a good is nonrivalrous:

Its use or enjoyment does not diminish the availability for others user or enjoyment

Public goods are characterized by 2 key features. one of which is

nonexcludability

Which of the following is a fundamental principle governments use to justify providing services to the public?

nonexhaustion

Which of the following is an example of a common-pool good?

Groundwater

Goods and services that can be, and often are, provided by the private sector meaning they are exclusive and can be exhausted are called:

social goods

Goods where nonpayers can effectively be prevented from utilizing, but use does not reduce the benefit to other people are called:

Toll goods

Goods where, by nature or design, exclusion is impractical or impossible, but use or enjoyment can potentially exhaust the good are called:

common-pool goods

In Texas, citizens can be excluded from all of the following for nonpayment, except for

Education

What is the primary source of revenue for state governments?

taxes on citizens

Which of the following states had the highest taxable resources per capita in 2013?

Virginia

Which region of the country had the highest levels of taxable resources per capita in 2013?

The northeast

Which of the following is the measure of the wealth of state or its ability to raise revenues relative to all other states?

Tax Capacity

What is the primary point missed by the per capita tax measure?

Tax exporting

The per capita tax rate is not very informative about how much citizens actually pay because:

Taxes are often exported to other states

Which of the following states had the highest taxable resources per capita in 2013?

Wyoming 75k-90k

Where did Texas rank in the amount of revenue raised per $1,000 of personal income?

46th the lowest out of the 50 states

Where would you expect to find Tennessee ranked in terms of state revenue per $1,000 in personal income?

Ranked near the bottom

Which of the following is a consumer tax?

sales tax, tobacco tax, motor vehicle sales tax: All these are correct

Which of the following categories of taxes contributed the least to the Texas treasury in 2014-2015?

Insurance occupation 4%

Which of the following categories of taxes contributed the most to the Texas treasury in 2014-2015?

Sales tax 55%

The majority of tax revenue in Texas comes from:

consumer taxes

Almost three-quarters of the states that do not have a personal tax income tax system are

among the "Terrible Ten"

What category of Texans, by income, pays the highest amount of sales and excises taxes as a percentage of income?

lowest 20%

Which category of Texans, by income, pays the lowest amount of sales and excises taxes as a percentage of income?

second highest 20%

__________ refers to the items that are subject to taxation.

The tax base

A sales tax, especially when food and medicine are subject to the tax, can be described as what type of tax?

regressive

Taxes in Texas are considered regressive because:

low-income persons a higher percentage of their income

Tax shifting could result in any of the following except

Higher profits to owners

Which of the following taxes cannot be shifted?

personal income tax

which of the following is an example of tax shifting?

A landlord raises the rent after his property taxes goes up

what are the two primary sources of revenue for local government in Texas?

local sales tax and property tax

Local governments collect and pay for _______ the cost of governments in Texas.

about one-half

How have property tax collections changing in Texas from 2009 to 2014?

Property tax collections increased nearly $10 million

What proportion of total property tax collections goes to school districts?

about one half

Texas school districts are heavily dependent on revenue from:

property taxes

Which level of government is most heavily dependent on service charges and fees to finance their services?

city

The greatest source of nontax revenue in Texas comes from

fees, fines, licenses, and penalties

How are school districts funding their increased share of the cost of local education?

higher local property tax

Health and human services is funded primarily with

federal grants

The Texas lottery

has seen declining revenue in recent years

In recent years, most of the growth in state expenditures in Texas has been driven by

population increases

During the 1980s there were 10 special sessions of the Texas legislature to correct revenue shortfalls. What was the cause of these shortfall?

declining price of oil

What is meant by income-elastic taxes?

Taxes that change quickly relative to economic conditions

When the price of oil experiences a prolonged price increase,

the Texas economy improves and Texas state revenues increase.

How many states do not have any form of personal income tax?

7

What is the second-largest source of revenue for Texas state government?

Franchise Fee

When economic conditions are bad, state tax revenues in Texas:

Decrease