INSTRUCTIONS NOT FOLLOWED:Could you please answer each of the 4 questions not put it all together? The study question is ask you to answer 4 questions not just one.

Example

POL 501/601 Budget and Financial Management and Administration

Spring 2017

Professor *

February 8 Study Questions – Budgeting for Revenues Part 2

Instructions

Read carefully each question and write an essay response. In your response make sure to address all points raised by the question. Use your own words to paraphrase reading material, and use references, where you think the information is specific enough that the authors have to be acknowledged.

The study questions are due before the start of class, printed and stapled, with your name at the top of the first page. Please bring an extra copy for your reference for the class discussion.

Question 1.

What is included in the current tax base of the sales tax? What tax principles are involved when considering expanding the tax base for the sales tax? (Remember that tax principles were covered last week)

Question 2.

What are the advantages and disadvantages of user charges?

Question 3.

Why is revenue diversification important? What makes revenue diversification difficult?

Question 4.

Note: This question combines readings from this week and last week.

How has the property tax changed over time for local governments? What are the advantages and disadvantages of the property tax as a revenue source? In response to these questions, make sure to refer to the main principles of taxation, as well as the importance of revenue diversification for local government.