New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

POLI 370, Week 3

by: runnergal

POLI 370, Week 3 POLI 370 001


Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover what was discussed in class during the week of 1/25/16.
Introduction to Public Administration
Dr. Xuhong Su
Class Notes
political science, Government
25 ?




Popular in Introduction to Public Administration

Popular in Political Science

This 6 page Class Notes was uploaded by runnergal on Sunday January 31, 2016. The Class Notes belongs to POLI 370 001 at University of South Carolina taught by Dr. Xuhong Su in Winter 2016. Since its upload, it has received 27 views. For similar materials see Introduction to Public Administration in Political Science at University of South Carolina.


Reviews for POLI 370, Week 3


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/31/16
POLI 370 – Lecture 4  Grants o Federal assistance or loans to individuals, like benefits, entitlement, research  grants, and PELL grants. o Federal spending is 19% of state economic activity, but there are wide variations  between states because of differences in population, tax effort (if a state taxes its  constituents more, then the federal government will give the state more money),  and per capita income. o Some types of grants are transportation, education, and healthcare. Conditions on  Categorical Grants (used for General/Broad/Block Grants (no Use specific activities; most federal designated use; can create inequality grants are this type) between states) Allocation  Formula (based Project (repeated Formula (based on a fact that the Method on a fact that the experience in federal government cannot control, federal this project area like population, age, tax effort, etc.) government helps states cannot control, receive these like population grants) of a state, age, tax effort, etc.)  Matching Lump sum (no Matching (state Lump sum (no Revenue Sharing state spending must match a state spending (the amount of required; can certain required) money that the also be a percentage of federal possibility for a the grant cost; government will project grant) can also be a give to a state, possibility for a based on state formula grant) tax effort) Limit on Grant  Close­ended Open­ended (no N/A N/A (limited financial limit) Size financial grant) o Intergovernmental Grants (summary of table) 1. Whether the use of the grant is intended for a specific or general service. 2. Whether the grant is automatically allocated by a formula or it requires an  application associated with a specific grant. 3. Whether the grant funds must be matched by recipient government funds. 4. Whether the potential size of the grant is limited.  Regulations o Regulations are rules administered by a government agency to influence  economic activity by determining prices; product standards and types; and the  conditions under which new firms can enter an industry. One example of this  phenomenon is rent control. o The focus is on the market, efficiency, control, and the allocation of social values. o Unintended externalities, however, often result from regulation. For example, if  the government regulates a natural monopoly that can supply the entire market  more efficiently than several competing firms under natural conditions, this  market will become less efficient. o The government must decide if the benefits, both economic and social, of  regulation outweigh the costs. o The government also aims to achieve social and political goals for the public  interest through regulation, such as getting socially desirable services and goods,  like clean water; protecting individual rights and privacy; achieving the resolution of national and global problems; regulating to benefits special groups, like  farmers; and conservation of resources. o Economic Theories of Regulation 1. Public Interest Theory: the idea that regulation seeks an efficient use of  resources. This is a positive outlook, like when the government tried to  stop payday loans with 700% interest rates. 2. Capture Theory: the idea that regulations helps producers to maximize  economic profit. This is a negative outlook, like when Duke lobbied to get the safe IM­3 percentage from the scientifically correct 3% to the  scientifically incorrect 150%. o Regulatory Rules: APA Procedures  Rulemaking: a process used to create regulations. It ensures that the  public is informed of proposed rules, can comment on aforementioned  rules, and can have access to the rulemaking record.  Administrative Procedure Act (1946)  Process: 1. Advance notice of proposed rulemaking. 2. Propose the rule. 3. Public comment. 4. Pass final rule, based on public comment and announced on the  federal register.  Tax Expenditures o Tax expenditure: revenue losses attributed to federal tax law provisions which  allow special exclusions, exemptions, or deductions from gross incomes. These  provisions offer special tax credits, a preferential tax rate, or a tax deferral  liability. 1. Individual tax expenditures: consumption + net wealth change =  income.  1. Exclusion: types of income that are not taxed, such as tax­exempt  bond interest. 2. Exemption: per­person amounts of money that the government  cannot tax. For instance, if you have one child, the government  cannot tax $4,000 of whatever your income is. 3. Deduction: personal expenditures that can be subtracted before tax is calculated. These deductions may be fixed amounts (standard  deduction) or amounts from specific goods and services (itemized  deduction).  Exemptions and deductions equal 80% of all individual tax  expenditures.  Largest Tax Expenditures o Exclusion of employers contributions for medical insurance premiums ($196 billion) o Exclusion of net imputed rental income ($76 billion) o Essentially, this exclusion is for people that own a home;  the government excludes that part of your income that you  would normally use to tax rent. o Deductibility of mortgage interest on owner­occupied  housing ($70 billion). This exclusion encourage people to  buy homes and not rent them out, thereby avoiding socio­ economic segregation. o Lower rate for capital gains ($60 billion). The tax rate for  stocks, bonds, etc. is 15%, as opposed to 23­30%. o Defined contribution employer plans ($59 billion), like  401ks. Defined contribution plans are where you retire with whatever you put into the plan as a lump sum, as opposed  to defined benefit plans, where you get $x per month until  you die. The government taxes you less if you save more  money in defined contribution plans. 2. Non­refundable tax credits  These tax credits cannot reduce your tax balance beyond $0; the  government will not give you money if these credits, in addition to  other tax expenditures, are greater than your income.  Some examples include an adoption tax credit, a child tax credit, a  foreign tax credit, and a mortgage tax credit. 3. Refundable tax credits  These tax credits can reduce your tax balance beyond $0; the  government will give you money if these credits, in addition to  other tax expenditures, are greater than your income.  One example is an earned income tax credit.  Corporate tax expenditures  Deferral of income from controlled foreign corporations ($76  billion). These tax expenditure encourages foreign investment.  Deductions for United States Production Activities ($10 billion).  This deduction encourages industry in the United States.  Accelerated depreciation of machinery and equipment ($8 billion). 4. Contracts  Contracts are the use of the private and market forces to provide a  good or service, the components of which include financing,  operations, and quality control.  Privatization is not an either/or question; rather, it is a question of  how much privatization. For example, the government buys guns  from the private market, but it has its own police force.  Additionally, the government must consider what should and what  should not be privatized.  Privatization Forms 1. Sell or load­shedding: For example, the Coast Guard in  Miami now makes people pay to be rescued unless you are  about to die. 2. Contracting for goods and services: More contracts have  been formed over the years. 3. Vouchers.


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.