Politics In American Local Government, Part I

Citizens tend to prefer sales taxes over property taxes because they are more equitable. Sales taxes are considered more equitable because they are based on consumption and everyone pays them regardless of their income or property ownership. On the other hand, property taxes are based on the value of one's property and can be seen as more burdensome for those with higher-valued properties. Sales taxes distribute the tax burden more evenly among citizens, making them a more preferred option.

In hostile tax environments like Oakland, CA, spreading the tax base by using many small taxes instead of a few large ones has been proven to be successful for raising revenues. By implementing multiple small taxes, the burden is distributed across a wider range of taxpayers, making it more difficult for individuals or entities to avoid or evade taxes. This strategy helps to ensure a more equitable distribution of the tax burden and reduces the risk of relying heavily on a single source of revenue.

Lottery revenue is not a major source of revenue for cities. While property taxes, charges and user fees for services, and grants from state governments are all common sources of revenue for cities, lottery revenue is not typically a significant source of funding for city budgets. Cities may receive a small portion of lottery revenue, but it is not a primary source of funding for their operations.

Property tax is the oldest tax levied in the United States. It has been in existence since colonial times and was initially used to fund local government services. Property tax is based on the assessed value of real estate and is typically levied by local governments to generate revenue for schools, infrastructure, and other public services. It is considered one of the most stable and reliable sources of revenue for local governments.

The correct answer is 45%. This percentage suggests that a significant portion of the average American city's revenues is derived from taxes, including property, sales, and income taxes. This indicates that taxes play a crucial role in funding various public services and infrastructure in cities across the United States.

Most states require their municipalities to operate within a balanced budget because it ensures financial stability and prevents excessive debt accumulation. A balanced budget means that the municipality's expenses do not exceed its revenue, promoting responsible financial management. This requirement helps maintain the overall economic health of the state and ensures that municipalities are not burdened with excessive financial obligations.

Pennsylvania is the correct answer because it has the highest number of local jurisdictions in the United States that levy a local income tax. Out of the 3,500 local jurisdictions, 75% of them are located in Pennsylvania. This indicates that Pennsylvania has a significant number of local governments that impose an income tax on its residents.

Public safety accounts for the highest percentage of municipal spending because it includes expenses related to police and fire departments, emergency services, and maintaining law and order in the community. These services are essential for the safety and well-being of the residents, making it a top priority for municipal governments. Transportation, interest on debt, and parks and recreation are also important areas of expenditure, but they typically do not require as significant a portion of the budget as public safety.

The given answer states that revenue from property taxes cannot be used toward education. This is not a major criticism of property taxes as a source of revenue because property taxes can indeed be used to fund education in many jurisdictions. Therefore, the statement is incorrect.

Businesses will develop in nearby jurisdictions that do not assess such a tax.