Politics In American Local Government, Part I

10 Questions | Total Attempts: 32

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Local Government Quizzes & Trivia

A difficult quiz about finance and budget it local government.


Questions and Answers
  • 1. 
    True or false?  Most states require their municipalities to operate within a balanced budget.
    • A. 

      True

    • B. 

      False

  • 2. 
    What is the oldest tax levied in the United States? 
    • A. 

      Property Tax

    • B. 

      Sales Tax

    • C. 

      Social Security Tax

    • D. 

      Internet Sales Tax

  • 3. 
    Approximately what percentage of the average American city's revenues comes from taxes?  (property, sales, income, etc)
    • A. 

      5%

    • B. 

      45%

    • C. 

      95%

    • D. 

      120%

  • 4. 
    Which one of these is NOT a major source of revenue for cities?
    • A. 

      Property taxes

    • B. 

      Charges and user fees for services

    • C. 

      Grants from state governments

    • D. 

      Lottery revenue

  • 5. 
    Which of the following is NOT a major criticism of property taxes as a source of revenue?
    • A. 

      It is difficult to evaluate and assess property values

    • B. 

      The tax discourages property improvements and maintenance

    • C. 

      The tax is slightly regressive because the poor spend a larger share of income on housing

    • D. 

      Revenue from property taxes cannot be used toward education

  • 6. 
    True or false?  Citizens tend to prefer sales taxes over property taxes because they are more equitable.
    • A. 

      True

    • B. 

      False

  • 7. 
    There are 3,500 local jurisdictions in the United States that levy a local income tax.  75% of them are located in which state? 
    • A. 

      Michigan

    • B. 

      Pennsylvania

    • C. 

      Texas

    • D. 

      Hawaii

  • 8. 
    There are many advantages to imposing local income taxes instead of property taxes.  Which one is NOT an advantage?
    • A. 

      It is less regressive

    • B. 

      It responds well to changing economic conditions

    • C. 

      Collecting the tax is cheaper and more efficient

    • D. 

      It attracts more businesses to the city

  • 9. 
    There are some cities, like Oakland, CA, that are hostile environments for collecting taxes,  Which of the following is a strategy that has been proven to be successful for raising revenues in these environments?
    • A. 

      Concentrate the tax on one thing like property taxes

    • B. 

      Spread the tax base by using many small taxes instead of a few large ones

    • C. 

      Focus the taxes on the citizens that will pay them and ignore those who won't

    • D. 

      Pick the largest employer in the city and tax the crap out of them

  • 10. 
    Which expenditure accounts for the highest percentage of municipal spending?
    • A. 

      Public safety

    • B. 

      Transportation

    • C. 

      Interest on debt

    • D. 

      Parks and recreation