textbook excerpts

what are the central ideas from the no government period?

• families are self-dependent but you can “count on your neighbors”

• government is NOT an institution that you turn to when there is trouble - the best government is the least government

• government should do traditionally what it has done - very little

what are the central ideas from the municipal government period?

• government can help solve problems, especially local governments from proximity

• candidates are more likely to receive voter support if they promise certain actions

• elections matter!

• by being organized, you can win elections

• inefficiency and corruption in government can cost individuals higher taxes, especially those with money

• those in public office can violate public trust and can be criticized for doing so (still not completely trusted)

what are the central ideas from the state intercity government period?

• state government could also become active

• under the name “the reform movement” many sought to undo urban machines - DILLON RULE: local governments are the creation of the state so must comply with state statures

• the decline of urban machines as a result of the “reforms”

• this success created the idea of “winners and losers” in government

• states could regulate intercity or intrastate commerce, require cities to do things, and supersede common laws

what are the central ideas of the federal government era?

• government should take responsibilities to soften economic hardship, help us in old age, and assure health coverage

• national defense and international involvement are also continuing responsibilities of the national government

• national standards for social things can override local standards (supremacy clause)

• national funds can be given to state and local governments with conditions attached

• the federal government can spend more than its revenue by borrowing

• for almost all problems, we can turn to the federal government

what are the central ideas of new federalism (1980-present)?

• initial main ideas

  -the private sector is superior to the public sector

  -less government is preferable to more government

  -state and local governments make better decisions than the federal government

• factors thought to influence these ideals NATHAN):

  -the new federalism of the Reagan administration that sought to cut federal underwriting to domestic programs (states either pay for it or they don’t get it)

  -modernization of state governments: improved managerial and technical capacity

  -reapportionment of state legislatures, giving more power to those in cities and suburbs

  -the south had caught up with the rest of the states in government resource capacity

  -the states overreacted to the sharp recession of the u.s. economy in the 1980’s by passing new taxes and curtailing expenses —> when the economy recovered, the states had ample reserves to innovate with new programs

central ideas of new federalism:

• the federal government can better achieve some goals by collecting taxes and assigning more responsibility to the states

• lower government taxing and spending can be beneficial by permitting individuals to make decisions for themselves

• government should take responsibilities to soften economic hardship, help us in old age, and assure health coverage

• the federal government should take responsibility when the private sector failures cause economic hardship

• national defense and international involvement are also continuing responsibilities of the national government

• states can choose to resist and work against federal programs they don’t agree with

how does society feel about the american tax system?

• in addition to being unhappy about the level of taxation, respondents were critical of the way the tax system works

• BUT views of government taxing and spending are inconsistent

  -americans mad taxes are high but also think they are generally fair and should be kept

  -they would prefer simpler income taxes but won’t give up the benefits they receive from them which CANNOT BE DONE —> all about winners and losers and equity issues

what are the overall main ideas of american taxation?

• americans are conflicted over taxes as they want more stuff but don’t want to pay more

• the “user pay” system works well in the private sector, but governments use both user pay and ability to pay systems to generate revenue

• tax burdens include both tax rates and tax bases

• state and local governments tax income, consumption, and property wealth - but state systems vary greatly in the mix

• tax revenue structures have implications for various tax burdens

• state and local taxes have become more regressive

• the burden of all government taxes is progressive for those with the lowest 80% of incomes

• budgeting is incremental in two senses: decision makers contemplate a limited number of alternatives and budgets usually change slowly over time