ECO365 University of Nairobi Government Revenue and Expenditures Discussion
1.Respond to the following in a minimum of 175 words:
Identify the main sources of revenue for and the largest expenditures made by federal, state, and local governments
2. Reply to the following classmate:
Katarina
Jansma
Katarina
Jansma
8 hours ago, at 12:02 PM
NEW
This is a great question which should be common knowledge, but unfortunately there are far too many adults in our country naive to this information. Revenue and expenditures are simple income and expenses for our government.
Federal government – The federal government has two many sources of income, but two of these account for 82.9% of revenue: individual income taxes and payroll tax. Other sources include corporate income tax and excise taxes. With all these taxes, it’s hard to imagine how indebted America truly is by spending this money (and more) on expenditures such as the top three: Medicare/Medicaid (26%), social security (24%), and national defense (15%).
State government – State revenue varies greatly throughout our country based on which state you live in, but it all comes back to taxes. State taxes are typically property taxes, sales taxes, and income from individuals as well as corporations. State expenditures help to sustain our standard of living such as health care (22%), education (21%), higher education, hospitals, police/corrections, and roadways.
3. Reply to the following classmate:
Tanya
Rudolph
Tanya
Rudolph
8/27/19, 12:56 PM
Identify the main sources of revenue for and the largest expenditures made by federal, state, and local governments.
Primary Sources of Revenue for Federal, State, and Local Governments
The fundamental sources of revenue for governments are eight. The revenue sources include tax, rates, fees, license fees, grants and grifts, the printing of paper money, penalties and fines, and borrowing. One, a tax refers to the compulsory levy imposed by the central government against which taxpayers have not to privilege on. Two, rates are local taxation levied by local governments rather than federal governments in the United States and other countries around the world. Three, fees are payments made by people to recurring costs of every service undertaken by governments in the interest of the public. Four, the license fee is a fee payable in instances in which governments’ authorities have been invoked to confer permission. Five, grants and gifts are voluntary contributions to governments from private companies or individuals to fund the government for specific purposes, such as defense fund and relief fund. Six, printing paper for money is also a source of revenue for governments. The methods help the governments to create additional cash. Seven, penalties and fines are changes imposed on individuals by governments as a punishment for an infringement of law. Lastly, borrowing from the public and foreigners is also a source of revenue to governments. For example, governments can borrow from its citizens in terms of loans in forms of bonds and deposits.
Most significant Expenditures Made by Federal, State, and Local Governments
Federal, states and local governments spend their money in three main areas, including mandatory sending, discretionary expenses, and debt service. Mandatory expenditure covers expenses controlled by laws rather than assumptions acts. The necessary costs include both Medicare and Medicaid started in 1965, and the earned income tax credit established in 1975. Also, discretionary spending is expenditures meant to cover programs which require appropriation by Congress. The costs include foreign aids, veterans’ benefits, and income security. Finally, debt service is payments made by the governments to clear their debts either from the public or foreigners.
