POLS 2312 CHAPTER 11
POLS 2312 CHAPTER 11 POLS 2312-001
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This 5 page Class Notes was uploaded by M.G on Saturday April 30, 2016. The Class Notes belongs to POLS 2312-001 at University of Texas at Arlington taught by Kimberly Harper in Winter 2016. Since its upload, it has received 52 views.
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Date Created: 04/30/16
Fiscal Policy ● In order to reduce debt, revenue must be taken from a service ● Texas is a low tax, low service state ● Flat tax ○ Herman Cain ■ 999 plan ● Less you make, more they take ○ Regressive structure ○ Poorer families pay more than wealthier families ■ Poorer families use more services and should hence pay more ● More you make, more they take ○ Progressive tax structure ○ Wealthier families pay more than poorer families because they make more ■ Taxing the wealthy will reduce one’s drive to become successful ● Income to Tax ○ If you’re making less than $29,000, you are paying 15% (~$4,300) of your income in taxes ■ $24,000 for a family of 4 is the poverty line ○ If you’re making more than $126,000 you pay 4% (~$5,000) of your income in taxes ■ ● TX Tax structure ○ TX tax structure is regressive Revenue ● Because people hate the dirty word, “taxes”, the state uses fees for revenue ● Sales tax is the largest source of revenue for TX ○ Important because everyone who buys something pays sales tax ○ State sales tax is 6.25% ○ 8.25% is the max you can pay ● TX is supposed to have a balanced budget, but we don’t. ● General Revenue Fund ○ Used as TX’s ‘checking’ account ○ Appropriations by Legislative branch ■ Governor has some say through line item veto ● Often used through threats ● We rank #4950 for spending on most services ● Seletive Sales Tax ○ For certain items, there are extra taxes ■ Gasoline ■ Tobacco ■ Lotto ■ Bed tax ● Hotel, motel, B&B ○ 6% bed tax ● Enacted because of tourism ■ Sin tax ● The tax we put on ‘immoral’ practices to discourage them and to generate more revenue ● Cigaars are exempt from the sin tax ● Franchise tax ○ Paid by businesses to limit their liability in lawsuits ● Payroll tax ● Severance tax ○ Paid by oil & gas companies to remove resources from the earth ○ 56% of revenue for TX ● Comptroller ○ Collects taxes and manages public accounts ● Gambling ○ Arlington used to be the gambling hotspot prior to Las Vegas ○ TX does not allow casino style gambling ○ TX does allow ■ The Lotto ■ Horse racing ■ Bingo ● Produced over 30 million in revenue ● Nontax revenue ○ 2/3rds comes from the federal government ○ More money for us that we don’t take because we don’t want to abide by the strings attached ○ Grants in aid ■ Way states get money from the federal government ■ Most of this money goes to health and human services, highways, and education ○ 71 billion comes in from the federal government ○ Land revenue ■ George P. Bush is commissioner of land… ■ 20 million acres of land to do as we please with ● Mineral rights ● Wind farms ● Farming ○ Misc ■ Fees ■ Permits ● Building ● TABC ● Vehicle ■ Fines ● TX Debt ○ 43 billion in debt ● Rainy Day Fund ○ Economic stabilization fund ○ TX’s savings account ○ Minimum amount required to keep in the fund is supposed to be 7 billion dollars Budget ● Budget was roughly 200.5 billion during the 20142015 fiscal year ● Grants in aid ○ Money goes to Health and Human Services, Education, and Transportation ■ Education is 40% of the state’s budget ● Food desert ○ Impoverished areas have no grocery stores, which means the people of that neighborhood eat at convenience stores and consequently, their life expectancy drops. Future Demands ● ¼ Texans are homeless ○ Costs the county roughly $30,000 per person per year ● Transportation ○ 1112% of the state’s budget ○ 50% of car accident fatalities are alcohol related ○ Roads are made for the population of the ‘80s and are way too cramped ● Public Education ○ Bullying ○ Lack of funding ■ 10% comes from federal government ■ 40% comes from the state ■ 50% comes from local property taxes ○ Leveler ■ Tries to level the playing field between students to give them all the same education ■ Robin Hood Plan ● Takes funds from wealthier districts and redistributes them to poorer districts ○ 60% of TX students are economically disadvantaged ● Higher Education ○ Higher tuition due to being deregulated ○ Reduced services ○ Affirmative action ■ Top 10% rule ● Poverty ○ 1820% of Texans live in poverty ○ Medicaid aids the poor ○ CHIPS Children’s Health Insurance Program ○ Causes ■ Large service industry ○ ¼ homeless are veterans ● Elderly ○ Medicare for elderly ● Transportation ○ 3rd largest budget item ○ 1112% of state’s budget ○ We fund about half of what TXDot needs to maintain and build the roads ■ Because of a lack of funding, most new roads are toll roads ○ A lot of TX bridges are structurally insufficient, but our reactionary culture will not fix the problem until something happens ○ Potholes are a huge problem ■ Some people draw male anatomy around the potholes to force the city to fix the problem ● Public Safety ○ Recidivism rates are high ■ TX needs more support programs ● Homeland Security ○ 1248 miles of the TX border is shared with Mexico ○ Highspeed very texan boats to combat river crossings ■ Tunnels ■ Boats ○ Natural disaster ■ Fires ■ Tornadoes ■ Earthquakes ■ Security issues related to looting and aftermath ● Water ○ Needed for ■ Agriculture ■ Drinking ■ Washing ■ Business (such as oil & gas) ● O&G uses around 1 million gallons of water per site ○ Such a large need that 2 billion dollars were taken out of TX’s rainy day fund
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