Deck 13: Budget, Finances, and Policy

Question 1

The income a state receives from taxes, fees, and other sources is known as

A) syndicated income.
B) expenditures.
C) revenue.
D) allotments.

Answer 1

C

Question 2

Texas lacks _______ tax.

A) a franchise
B) a gas
C) sales
D) income

Answer 2

D

Question 3

The _______ is the state's largest single source of tax income.

A) income tax
B) property tax
C) sales tax
D) municipal bond

Answer 3

C

Question 4

Which of the following is NOT an argument for increasing the gas tax?

A) Modern cars cause more wear and tear on roads.
B) Fuel economy has gone up.
C) The cost of construction supplies has gone up.
D) The cost of labor has gone up.

Question 5

The process by which local governments set the value of a piece of property for tax purposes is called

A) valuation.
B) gouging.
C) price-shopping.
D) appraisal.

Question 6

State taxes levied on alcohol and tobacco are known as

A) deviance taxes.
B) morality taxes.
C) sin taxes.
D) party taxes.

Question 7

When there is an economic downturn, sales tax collections

A) fall.
B) are stopped.
C) rise.
D) plateau.

Question 8

When you renew your license plates you must pay _______ to the state.

A) extortion
B) a bribe
C) a fine
D) a fee

Question 9

When you get a speeding ticket you must pay _______ to the state.

A) extortion
B) a bribe
C) a fine
D) a fee

Question 10

School districts are primarily funded by

A) sales taxes.
B) property taxes.
C) ticket revenue at high school football games.
D) gas taxes.

Question 11

Why might someone argue their home is worth less than the value the state assesses?

A) Higher assessments require service in the city government.
B) A lower assessment increases the number of scholarships you're eligible for.
C) A lower assessment makes you eligible for government money for renovations.
D) A lower assessment means less in property taxes.

Question 12

Which group is not eligible for an exemption in property taxes?

A) First responders
B) Veterans
C) Senior citizens
D) Disabled persons

Question 13

The _______ taxes corporations 0.5-1% of their total revenue

A) franchise tax
B) income tax
C) corporate tax
D) big business tax

Question 14

Compared to other states, Texas' property taxes are quite high. Why is this?

A) Texas has a lot of really desirable property.
B) Texas is so vast that it requires more money to run.
C) Texas lacks an income tax.
D) Texas believes everyone should contribute to helping others via taxes.

Question 15

Property taxes are assessed based upon the

A) length of ownership of the property being taxed.
B) value of the property the taxpayer owns.
C) net value of the owner.
D) number of children in a family.

Question 16

A property is valued at $100,000, but the property owner only has to pay taxes on $75,000. Why is this?

A) The property is likely located in one of the state's tax havens.
B) The homestead exemption applies.
C) The property assessor undervalued the property.
D) The low-tax exemption applies.

Question 17

In addition to the homestead exemption, some might someone get an additional tax exemption by being a

A) friend of the governor.
B) business owner.
C) veteran.
D) college graduate.

Question 18

During the covid-19 pandemic, more people stayed home and fewer people traveled. This resulted in less gasoline sales. What impact did this have on the gas tax?

A) It increased revenues.
B) It lowered revenues.
C) It forced the state to charge more at the pump.
D) The state suspended the gas tax to get more people to drive.

Question 19

If you own a house worth $200,000, you will pay more in income property taxes than if your house is worth $100,000. This is because the property tax is a(n) _______ tax.

A) variable
B) popular
C) ex post facto
D) ad valorum

Question 20

Which taxes apply the same to everyone, regardless of income?

A) Progressive taxes
B) Regressive taxes
C) Fair taxes
D) Tyrannical taxes

Question 21

The oil and natural gas tax is also known as the _______ tax

A) resource
B) west Texas
C) fossil
D) severance

Question 22

The sales tax is higher in some counties than in others. Why is this?

A) Counties can add up to 2% to the base sales tax rate.
B) The state often punishes counties with higher sales tax rates.
C) When a county gets road improvements they must pay for it via a higher sales tax.
D) When schools perform poorly, the state raises the sales tax in that county to improve the school.

Question 23

The gas tax funds road construction and

A) state parks.
B) schools.
C) police.
D) sports stadiums.

Question 24

Taxes imposed on the sale of alcohol and tobacco and on some forms of gambling, and fees imposed on "sexually oriented" businesses, are called

A) sales taxes.
B) gas taxes.
C) "sin" taxes.
D) franchise taxes.

Question 25

Raising taxes is always unpopular. What form of tax do voters object the least to raising?

A) Gas
B) Property
C) Income
D) Sin

Question 26

When the price of oil falls, Texas

A) produces more oil to make up for the difference.
B) sees its revenues increase.
C) sees no change in revenue, all of the oil has been presold.
D) sees its revenue decrease.

Question 27

Texas maintains the _______ for fiscal emergencies.

A) Rainy Day Fund
B) Governor's Discretionary Fund
C) Legislative Bank
D) County Land Bank

Question 28

Why are Texans so opposed to the income tax?

A) Income taxes are already high.
B) It runs against the state's political culture.
C) It would expand the size of the state bureaucracy.
D) Doing taxes would take twice as long.

Question 29

Which type of tax provides the most stable funding source during an economic downturn?

A) Franchise tax
B) Gas tax
C) Sales tax
D) Income tax

Question 30

The tax Texans dislike the most is the _______ tax.

A) property
B) sin
C) margins
D) sales

Question 31

Which group generally likes taxes the least?

A) Republicans
B) Democrats
C) Younger people
D) Religious people

Question 32

A payment for a service rendered is referred to as

A) a fee.
B) a fine.
C) a tax.
D) a settlement.

Question 33

Every bill must contain _______ that estimates how much the bill will generate or cost if passed.

A) a fiscal note.
B) an appropriations bill.
C) a budget bill.
D) a pay-as-you go document.

Question 34

The state comptroller provides _______ at the beginning of each regular session.

A) a biennial revenue estimate
B) a fiscal note
C) an appropriations summary
D) a budget request

Question 35

Legislation that specifies what spending the state will undertake is referred to as

A) a biennial revenue estimate (BRE).
B) a fiscal note.
C) an appropriations bill.
D) a budget request.

Question 36

The state comptroller reviews the budget to _______ that the anticipated revenue will be sufficient to cover the appropriations.

A) analyze
B) submit
C) evaluate
D) certify

Question 37

Texas uses a _______, in which the legislative branch and the executive branch coordinate to propose, shape, and pass a biennial budget.

A) governor-led budgeting process
B) multimember budgeting process
C) dual budgeting process
D) legislature-led budgeting process

Question 38

One budget trick that legislators use to "make room" for increased spending is the use of

A) deferrals.
B) referendums.
C) debts.
D) dual budgets.

Question 39

When the state takes in revenue, it is first held in _______ before being allocated for its specific purpose.

A) the Permanent School Fund
B) the Governor's Discretionary Fund
C) general revenue funds
D) the Legislative Bank

Question 40

The total amount of money the state can spend is called

A) expenditures.
B) revenue.
C) gross income.
D) spending power.

Question 41

Mistrust of executive power led the framers of the 1876 Constitution to institute a budget process where the governor

A) has total control over the process.
B) is completely shut out of the process.
C) must work with the legislature.
D) must work with the county judges.

Question 42

The budget bill contains directives telling agencies how to collect and spend funds. These are called

A) riders.
B) reminders.
C) specifications.
D) regulations.

Question 43

The legislature would like to pass a bill, but doesn't have the funds to pay for it right now. How can they still pass it?

A) By running a deficit
B) By using a deferral
C) By asking Congress to print more money
D) By writing a bad check

Question 44

Before the governor can sign the budget (appropriations) bill, it must be certified by the

A) comptroller.
B) lieutenant governor.
C) secretary of the treasury.
D) secretary of state.

Question 45

The Legislative Budget Board (LBB) works with the _______ to prepare the budget.

A) budget director
B) governor
C) county judges
D) mayors

Question 46

The llegislature passes budgets for two fiscal years at a time. Why is this?

A) It is more efficient to pass two at a time.
B) The legislature only meets every other year.
C) The budget process is complicated, so they just want to get it over with.
D) One year the legislature focuses on the budget; the other year it focuses on other legislation.

Question 47

The budget rule that states that Texas cannot spend more money than it receives in revenue is known as

A) the "pay as you go" rule.
B) the expenditure rule.
C) budget diversification.
D) the general revenue allocation rule.

Question 48

How does Texas bring in revenue?

Question 49

Explain the significance of the sales tax.

Question 50

Describe property taxes in Texas.

Question 51

What are "sin" taxes in Texas?

Question 52

Which taxes do Texans like the least?

Question 53

What is the dual budgeting process in Texas?

Question 54

Explain the two taxes that Texas relies on most heavily for state revenue.

Question 55

Make an argument for why Texas avoids the use of the income tax. Do you think this is good for Texas?

Question 56

Other than sales and property taxes, what are sources of revenue for the state of Texas? Discuss whether there are restrictions on what these funds can be spent.

Question 57

Explain the reasons behind the Rainy Day Fund and it's current state.

Question 58

Explain the basics of the budget making process in Texas.