POLS 207 Chapter Notes - Chapter 5: Non-Local Variable, Homestead Exemption, Incrementalism
15 Sep 2016
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Nearly 50% of people want to keep taxes and services where they are or raise taxes and increase services. The views of government taxing and spending are inconsistent. Americans are unhappy because taxes are too high. They also say taxes are generally fair where they are. They prefer simpler income taxes but will not give up the benefits they receive from the exemptions and deductions that make income tax complex. Some unfortunate truths: politicians have always promised to both lower taxes and keep services by making government more efficient. Normative ideas: example of outsourcing the job of paying taxes is severance taxes levied on natural resources. Those who consume the resources will ultimately pay the tax: another method of exporting costs is taxing good and services purchased by nonlocals, such as tourists and other visitors. Many think that govt. services should be paid this way. The services are provided to all who are eligible, regardless of their wealth.
