Texas GOVT 2306 Chapter Twelve

The principle whereby denial of services from those who did not pay for them is known as

exclusion

What is the primary source of revenue for state governments?

taxes on citizens

Which of the following is the measure of the wealth of a state or its ability to raise revenues relative to all other states?

tax capacity

What is the primary point missed by the per capita tax measure?

tax exporting

Which of the following is a consumer tax?
sales tax
tobacco tax
motor vehicle sales tax

All these answers are correct.

Which of the following categories of taxes contributed the least to the Texas treasury in 2011-2012?

insurance occupation

Almost three-quarters of the states that do not have a personal income tax system are

among the "Terrible Ten".

________ refers to the items that are subject to taxation.

The tax base

Which of the following taxes CANNOT be shifted?

personal income tax

What are the two primary sources of revenue for local government in Texas?

local sales tax and property tax

Local governments collect and pay for ________ the cost of government in Texas.

more than half

In Texas, the proceeds from the state lottery go to

education

Health and human services accounts for about 32 percent of the state budget and is funded primarily with

federal grants.

In recent years, most of the growth in state expenditures in Texas has been driven by

population increases.

During the 1980s there were 10 special sessions of the Texas legislature to correct revenue shortfalls. What was the cause of these shortfalls?

$10-a-barrel oil

What is meant by income-elastic taxes?

taxes that change quickly relative to economic conditions

How many states do not have any form of personal income tax?

7

In a comparison of the 15 most populous states, where did Texas rank in the amount of revenue raised per $1,000 of personal income?

lowest

Which of the following categories of taxes contributed the most to the Texas treasury in 2011-2012?

sales

A sales tax, especially when food and medicine are subject to the tax, can be described as what type of tax?

regressive

Tax shifting could result in any of the following EXCEPT
incorrect lower pay to workers.
higher prices.
higher profits to owners.
lower returns to investors.

higher profits to owners.

Which level of government is most heavily dependent on service charges and fees to finance their services?

city

How are school districts funding their increased share of the cost of local education?

higher local property tax