THIS IS ONLY AN INTERPRETATION, FIVE SENTENCES AND A QUESTION IS ALL I NEED. TELL ME YOUR THOUGHTS, HAVE REFERENCES (I need this completed by the end of today, 10pm CST) Citizens rely on government toprovide public safety, education, environmental protection, publichealth, national defense, etc. In order to provide these things, thegovernment needs to have revenue to pay for them (Mikesell, 2014).Taxing is the main way that governments fund the programs and servicesthey offer. Taxes are a mandatory financial contribution imposed by agovernment to its citizens to raise revenue (Mikesell, 2014). There aredifferent types of taxes and different ways to tax people. It is bestfor a government to have a diversified portfolio to raise revenue sothat it does not rely too heavily on one source. For example, if theeconomy is struggling, and the government relies solely on sales tax forrevenue, the government revenue will greatly decrease. In times ofeconomic struggle, people do not buy as much, and sales tax will greatlydecline (Laureate, 2008). Some different types of taxes thatgovernments impose include income tax, property tax, and salestax (Mikesell, 2014). Each tax has pros and cons, but governments shouldtry to not overburden their people with taxes. The ideal tax is enoughto fund government expenditures, but not be too cumbersome for citizens(Mikesell, 2014). Sales tax Almost half of the state tax revenue in the United States comes fromtax on consumption. It is also an important revenue for cities.Consumption tax includes sales tax and selective excise tax. Sales taxis a broad tax that is applied to the sale of goods and services(Mikesell, 2014). Another advantage of sales taxes is that local andstate governments can benefit from them when people who live outsidetheir boundaries shop in their areas. This is not just a tax that localpeople pay, and money from outsiders can bring in more money for thesegovernments. As there are drawbacks with all types of taxes, sales taxtends to be a regressive tax that can hit lower income people harderthan higher income people. To try to combat this, some governments willexempt items such as food and clothing to give lower income people areprieve from the tax (Laureate, 2008). Despite this drawback, I thinkthat sales tax is a good way for governments to collect revenue. It is agood way to help fund goods and services that the government provides. Property tax Property tax is another way that governments can collect revenue fromcitizens. It does not raise as much revenue as income or consumptiontaxes. Property tax is very important for the fiscal independence oflocal governments because it is locally levied and administered andfinances much in local government (Mikesell, 2014). Property tax iscollected based on the value of property or structures on a property.Like sales tax, when the economy struggles and property values go down,the government collects less revenue (Laureate, 2008). Property tax,however, is more stable during recessions than consumption or incometaxes (Mikesell, 2014). Since property tax is administered on a locallevel, tax rates vary vastly by region and assessments can becomplicated (Mikesell, 2014). Property taxes are also seen as regressiveand horizontally inequitable. Property tax rates vary widely acrossproperties of similar value, and property taxes paid by families ofsimilar affluence can differ significantly. Property tax rates can alsobe changed annually (unlike other forms of taxation) to offset localoperating budgets and costs of servicing debt obligations (Mikesell,2014). Despite these irregular and changeable assessment patterns, Ithink that the revenue and autonomy afforded to local governmentsthrough property tax is favorable enough to make its benefits outweighits drawbacks. References Laureate Education (Producer). (2008b). Budget management functions: Revenue [Video file]. Baltimore, MD: Author. Mikesell, J. L. (2014). Fiscal administration: Analysis and applications for the public sector (9th ed.). Boston, MA: Wadsworth.
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