DQ 1-2

Running head: REVENUE SOURCES AND EXPENDITURES

1

DQ 2

-

1

Responses

The

impact of revenue sources and expenditures on budget building

.

1.

There

are

various

sources

of

revenues

as

discussed

in

the

text

including

property

taxes,

income

taxes,

sales

taxes,

use

taxes

and

other

taxes.

Income

taxes

are

imposed

by

all

levels

of

government

at

the

federal,

state,

and

local

levels.

It

provides

a

subst

antial

amount

of

funds

at

each

level

of

government.

Property

taxes

are

generally

imposed

at

the

local

level.

For

instance,

in

my

town,

we

pay

property

taxes

to

the

county,

city,

and

school

district.

These

taxes

are

based

on

the

assessed

value

of

the

proper

ty

which

is

then

multiplied

times

the

various

tax

rates

as

set

by

the

three

different

tax

bodies

.

Our

school

district's

tax

is

the

highest

followed

by

the

city

and

then

the

county.

In

our

state,

we

have

a

general

sales

tax

of

6%

but

an

additional

1

percent

is

added

on

in

the

county.

It

is

from

these

resources

that

the

tax

authorities

will

estimate

their

revenues

and

from

this

estimate

they

will

then

estimate

the

expenditures

that

will

go

to

make

up

their

new

budget

.

Is

the

tax

structure

similar

to

ours

wher

e

you

live

?

2.

The main parts of every bu

dget include revenues and expenditures because it is money

collected and money spent. Both, revenue sources and expenditures impact budget building for a

variety of reasons. The budget needs to be built based on how much is coming in and how much

is going

out. According to the Congress Budget Office (2012) tax expenditures have a significant

impact on the budget since they reduce revenues by a good amount, but are not readily

identifiable in the budget so because of this they are not subjected to annual rea

uthorization. On

the other hand revenue sources impact the budget building due to the nature of what the revenue

sources are and contribute to the budget. Revenue is basically money being collected for the

budget and tends to come from taxes. Taxes come in

many forms from state, property, user

charges, and various other taxes that affect each individual. (Lynch et. al., 2017) Being that taxes

affect all individuals and can change either by increasing or decreasing the budget needs to be

revised to accommoda

te the increases or decreases. Any discrepancies within the budget need to

be handled accordingly and for state and local governments the budget needs to remain in

balance. Keeping the expenditures and revenues in line will aid in keeping the budget balanc

ed

overall. No matter how the budget is set up it must include both revenues and expenditures and

should remain in balance.

References

Congress Budget Office. (2012).

Tax

expenditures

have

a

major

impact

on

federal

budget.

Retrieved form

https://www.cbo.gov/publication/42919

Lynch, T. D., Sun, J., & Smith, R. W. (2017).

Public

budgeting

in

America

(5th ed.). Irvine, CA:

Melvin & Leigh.

Running head: REVENUE SOURCES AND EXPENDITURES 1

DQ 2 -1 Responses

The impact of revenue sources and expenditures on budget building.

1. There are various sources of revenues as discussed in the text including property taxes, income

taxes, sales taxes, use taxes and other taxes. Income taxes are imposed by all levels of

government at the federal, state, and local levels. It provides a substantial amount of funds at

each level of government. Property taxes are generally imposed at the local level. For instance, in

my town, we pay property taxes to the county, city, and school district. These taxes are based on

the assessed value of the property which is then multiplied times the various tax rates as set by

the three different tax bodies.

Our school district's tax is the highest followed by the city and then the county. In our state, we

have a general sales tax of 6% but an additional 1 percent is added on in the county. It is from

these resources that the tax authorities will estimate their revenues and from this estimate they

will then estimate the expenditures that will go to make up their new budget.

Is the tax structure similar to ours where you live?

2. The main parts of every budget include revenues and expenditures because it is money

collected and money spent. Both, revenue sources and expenditures impact budget building for a

variety of reasons. The budget needs to be built based on how much is coming in and how much

is going out. According to the Congress Budget Office (2012) tax expenditures have a significant

impact on the budget since they reduce revenues by a good amount, but are not readily

identifiable in the budget so because of this they are not subjected to annual reauthorization. On

the other hand revenue sources impact the budget building due to the nature of what the revenue

sources are and contribute to the budget. Revenue is basically money being collected for the

budget and tends to come from taxes. Taxes come in many forms from state, property, user

charges, and various other taxes that affect each individual. (Lynch et. al., 2017) Being that taxes

affect all individuals and can change either by increasing or decreasing the budget needs to be

revised to accommodate the increases or decreases. Any discrepancies within the budget need to

be handled accordingly and for state and local governments the budget needs to remain in

balance. Keeping the expenditures and revenues in line will aid in keeping the budget balanced

overall. No matter how the budget is set up it must include both revenues and expenditures and

should remain in balance.

References

Congress Budget Office. (2012). Tax expenditures have a major impact on federal

budget. Retrieved form https://www.cbo.gov/publication/42919

Lynch, T. D., Sun, J., & Smith, R. W. (2017). Public budgeting in America (5th ed.). Irvine, CA:

Melvin & Leigh.