Deck 13: Revenue Forecasts, Revenue Estimates, and Tax Expenditure Budgets

Question 1

When preparing a baseline revenue forecast for the budget process, the analyst:

A) includes the effect of proposed tax legislation on collections.
B) never estimates increases larger than experienced in the most recently completed fiscal year.
C) ultimately prepares time series estimates.
D) None of the above.

Answer 1

ultimately prepares time series estimates

Question 2

A tax expenditure budget:

A) Estimates how much revenue is needed to support programs proposed by the chief executive.
B) Estimates how much revenue is lost through preferences included in the tax structure.
C) Estimates the impact of changing the tax code on budget revenue.
D) Calculates the long term revenue impact of economic development.

Answer 2

Estimates how much r evenue is lost through preferences included in the tax structure Chapter Fourteen

Question 3

Long-term revenue forecasts:

A) typically employ far more detailed and sophisticated techniques than those prepared for annual budgets.
B) are regularly tested against actual collections.
C) often use deterministic formulae.
D) None of the above.

Answer 3

often use deterministic formulae

Question 4

If the present tax structure is the normal tax baseline, then the level of tax expenditures:

A) equals zero.
B) is larger than under the reference tax law baseline.
C) cannot be estimateD)
D) rises as the economy expands.