Politics In American Local Government, Part I

10 Questions | By Mrm415 | Last updated: Apr 1, 2014 | Total Attempts: 33

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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