individua land corporateincome ). H u m a n i t i e s

Consider the following questions for discussion:

1. Discuss the 2018 reform of the federal income tax(both individua land corporate

income).

Make sure to discuss the federal income tax in terms of the main principles of

taxation.

Discuss the current issues with the federal income tax, with an emphasis on

the efficiency and equity of the marginal tax rates, the exemptions and

deductions, and the tax credits.

Discuss the equity issues raised by different marginal tax rates on individual

and corporate income.

Additionally, feel free to discuss the cost of administration and adequacy of

revenue of the federal income tax.

2. Does the current use of the sales tax constitute a good revenue source?

In answering this question, make sure to address issues with the tax base of the sales tax, including online sales, and services vs. goods taxation, equity concerns, and its capacity to generate stable revenue.

Do you know of any reform proposals related to the sales tax in your state or locality? If you do, briefly share the nature of the reform proposal and your position on the issue.

3. How has the property tax changed overtime for local governments?Whatare the advantages and disadvantages of the property tax as a revenue source? Are you aware of specific property tax-related reforms or proposals for reforms? If yes, how did the course influence your understanding of these?

In response to these questions, make sure to refer to the main principles of taxation, as well as the importance of revenue diversification for local government.

4. Discuss one strategy for revenue diversification used by local governments based on the assigned readings. What is your understanding of the advantages and disadvantages of that strategy? Provide your own examples in this discussion, if you can identify such, based on your experience with local government services.

References to help:

Public Budgeting Systems (9th ed.)

• • Chapter 5: “Budgeting for Revenues: Income Taxes, Payroll Taxes, and Property Taxes” (pp. 133–164)
  • Chapter 6: “Budgeting for Revenues: Transaction-Based Revenue Sources” (pp. 165–185)

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