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

Study Questions 2

Question 1

A tax base is defined as the aggregate value or amount that can be subjected to taxes such as sales or VAT. In the process of expanding the tax base for sales tax, several micro-economic and macroeconomic factors must be considered. One, it is necessary to evaluate the current amount of goods and services that are tax exempt. This is because all goods and services are imposed a certain tax unless they are exempted (Sjoquist and Stoycheva 47). Having a large portfolio of exempted merchandise reduces the overall amount collected as tax and this places a strain on the existing public resources. The legal considerations involved in making the expansion also have to be considered. The approach towards making these changes also has to be considered. Adopting a comprehensive approach in the expansion process has the consequence of brining the majority of products into the sales tax base in one move (Lee Jr, Johnson, and Joyce 67). This can have a positive or negative impact on economic stability. Equality is another aspect that must be considered in the process of expanding the tax base for sales tax. When the tax base is expanded, it implies that more money will be taxed from every taxpayer. This has a far worse effect on middle and low-income housing that are already struggling to afford basic amenities (Lee Jr et al., 34). The decision to expand the tax base will affect a group of people within the country regardless of the way in which it is handled.

Question 2

User charges can be defined as the charges placed for using a product or service. User charges are normally evoked with the amount of goods or services used or for the duration of usage. Common examples within the public context include deductibles and extra billing (Lee Jr et al., 12). Most of the arguments supporting the resurgence of user charges consider the concept well suited with fundamental principles of accessing affordable health, schooling, and other welfare services. Proponents of user charges claim that public users are closely involved in the funding of the services they enjoy, they acquire a greater sense of accountability and duty that improves the longevity and effectiveness of these services. Additionally, user charges are a useful source of funding that can be used to improve the quality of services being offered (Sjoquist and Stoycheva 88). Lastly, placing user charges reduces public expenditure on goods and services. Cost sharing with the public implies that the specific agency can award their finances to other causes.

Conversely, the sides that oppose the imposition of user charges argue that they interfere with the access of public amenities and services. In such circumstances, introducing user charges can be perceived as a violation of the ideology that guarantees fair access to public goods and services without considering the financial ability (Lee Jr et al., 79). The public can be exposed to participant culpability in which they are intentionally exploited financially. The user charges also have the possibility of imposing unfair fees on undeserving citizens. Additionally, the bureaucracy involved in collecting the funds can create more problems for the government. Public restructuring, devolution of welfare services to municipal governments and budget decisions to lower the allocation for human services have increased the emergence of user fees.

Question 3

The importance of revenue diversification cannot be overstressed. Governments that rely on a few sources of funds will find themselves struggling to offer even the basic amenities to the public. It is practical to seek out all diverse methods of funding programs. Eventually, a diversified revenue approach reduces the risk of experiencing losses any single source of income. In the event that one source dries up, it is easier to shift their focus to another (Sjoquist and Stoycheva 87). This is particularly true in societies where the private and public sector are well developed. Healthy governments display a combination of funding sources such as multinational corporations, earned income, taxes, and individual investors (Lee Jr et al., 25). Managing diversification in a different and parallel environment is equally challenging mainly because as the government moves from one agency to another, it is forced to reevaluate all the existing income streams before making an informed decision.

Managing revenue growth in itself is a challenging task and for governments having numerous agencies, employees and sources of income, this job is far more complicated. Revenue diversification in the public realm is characterized by massive bureaucracy, inefficiency and other flaws that are related to the country. Statistical workloads are another challenge that affects proper revenue diversification. Financial decisions are made using fundamental macroeconomic principles that require experienced personnel. Most government employees are overwhelmed and therefore, fail to deliver their services appropriately (Lee Jr et al., 90). The result is poorly organized revenue diversification. Traditional barriers such as extensive research and location have a negligible but still recognizable impact on revenue diversification. Difficulties also emerge in the feedback process. In most corporate settings, the feedback system is very fast. However, in the public sector, collecting and relaying feedback is relatively slow. This is because of the conventional challenges such as insufficient staffing and bureaucracy.

Question 4

Property taxes are a significant factor that affects profitability of property owners across the nation. Property taxes play a major role because of their complications and the difficulty in comprehension. The evolution of property tax for local governments has been significant within the last decade. Property taxes in the recent period are still a central source of funds for local authorities. The realistic purpose of this category of taxes, consequently, is very similar to its earlier version in the colonial period (Sjoquist and Stoycheva 32). Property taxes were central in supporting local government programs where income and sales taxes were likely to concentrate on the federal level of advantages. Many efforts at restricting the growth of property taxes, nevertheless, have occurred in the past, with a particular focus on ensuring that these tax rates do not soar to uncontrollable levels with the growth in property values. Property taxes have become a fundamental aspect of the modern side of the United States, forming a niche and maintaining its state as one of the biggest income sources for local authorities for several centuries (Lee Jr et al., 11). The transformation of property tax evaluation and payment is closely attached to the ability of the tax to adjust to the needs of different stakeholders including taxpayers and state agencies benefiting from the money. Property tax on buildings adjusts the motivations for developing land that consequently affects land use trends (Sjoquist and Stoycheva 56). One of the major worries is whether it promotes urban encroachment. Property tax has also shown indicators of being regressive. In other words, property tax affects the lower income group disproportionately when implemented in a poor way. This is because of the impact on specific low-income groups including retirees and farmers.

Works Cited

Lee Jr, Robert D., Ronald W. Johnson, and Philip G. Joyce. Public Budgeting Systems. Jones & Bartlett Publishers, 2012.

Sjoquist, David L., and Rayna Stoycheva. "Local revenue Diversification: user charges, sales taxes, and income taxes." The Oxford handbook of state and local government finance (2012): 429-462.