Taxes
Cities get most of their money from which tax?
Property
What is a tax abatement?
An exemption from property value tax increases
Because we focus on being a limited government, what challenges does that bring us in terms of finances?
*Not enough money to cover increasing needs for infrastructure
Do we have an income tax in Texas?
No
About what percentage of Texas' budget is available for discretionary spending?
<20%
ISDs get most of their money from which tax?
Property
What is a balanced budget requirement?
Their must be equal money coming in and going out Texas can only be in debt if 4/5 of the lege approves going into debt.
How is Texas a business-friendly state?
Tax cuts for new businesses, extra funding, subsidies
Any type of money coming into the state is considered ____
revenue
What is a progressive tax?
People with higher incomes pay a higher percentage of their income in taxes.
What is the base sales tax?
6.25
Sales
What is an expenditure?
Money going out
What two people have to sign off on the budget before it can be approved?
Governor
Comptroller
What is a proportional tax?
A tax where everyone pays an equal percentage of their income. Lower-income earners pay less, and higher-income earners pay more
In addition to the base 6.25 sales tax, how much extra sales tax can a city add onto this?
2%
Most of our budget goes to which category?
Education
About how much money comes from the federal government?
1/3 of our budget
How reliant is Texas on the oil and energy sector?
Very, it accounts for 20% of our GDP
What is the Texas Enterprise Fund?
The TEF is a rainy day fund largely used to compete for business via grants, subsidies, tax breaks, and infrastructure investment
What is a regressive tax?
A regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners.
The second-largest budget expense in Texas is
Health and human services
Extra taxes charged on gasoline (excise), or extra taxes levied on alcohol, cigarettes, strip clubs (sin tax)
What is a tax expenditure through the eyes of the state?
What are some limitations of sales taxing?
It's regressive
It can't respond to long-term fiscal shortfalls
Can only be raised so much
Does not keep up with the growth of the economy
Excludes many services from taxation