Question 1

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

Accepted Answer

The correct term for the oil and natural gas tax is the "severance" tax. This tax is levied on the extraction (or "severance") of natural resources from the earth.

Question 2

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

Accepted Answer

Counties have the authority to add an additional percentage to the base sales tax rate set by the state, allowing for variability in sales tax rates across different counties.

Question 3

The gas tax funds road construction and

Accepted Answer

The answer of The gas tax funds road construction and
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Question 4

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

Accepted Answer

"Sin" taxes are specifically levied on goods and activities that are considered harmful or morally questionable, such as alcohol, tobacco, and certain forms of gambling, as well as fees on businesses considered to be "sexually oriented." These taxes are intended to discourage consumption of these goods and services by making them more expensive.

Question 5

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

Accepted Answer

Sin taxes, which are levied on products or activities considered harmful (like alcohol, tobacco, and gambling), tend to be the least unpopular among voters for increases. This is because they are often seen as voluntary taxes that target unhealthy or socially undesirable behaviors, making them more palatable to the general public.

Question 6

When the price of oil falls, Texas

Accepted Answer

When the price of oil falls, Texas, which is a significant oil-producing state, typically sees its revenue decrease because the value of the oil it sells is lower.

Question 7

Texas maintains the _______ for fiscal emergencies.

Accepted Answer

The Rainy Day Fund, officially known as the Economic Stabilization Fund, is a savings account maintained by the state of Texas to provide funding for the state during fiscal emergencies or revenue shortfalls.

Question 8

Why are Texans so opposed to the income tax?

Accepted Answer

Texans generally oppose income tax because it conflicts with the state's political culture, which values low taxes and limited government intervention.

Question 9

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

Accepted Answer

Income tax is a progressive tax that is levied on individuals and businesses based on their income. During an economic downturn, income tax revenue may decline as businesses and individuals experience reduced income. However, income tax still provides a relatively stable funding source compared to other types of taxes, such as sales tax or gas tax, which are more directly tied to consumer spending and economic activity.

Question 10

The tax Texans dislike the most is the _______ tax.

Accepted Answer

The property tax is the most disliked tax among Texans, primarily because it is perceived as high and impacts homeowners directly.

Question 11

Which group generally likes taxes the least?

Accepted Answer

Republicans generally have a platform that advocates for lower taxes and smaller government, which means they typically like taxes the least compared to other groups.

Question 12

A payment for a service rendered is referred to as

Accepted Answer

A fee is a payment made to a professional or skilled person in exchange for their services.

Question 13

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

Accepted Answer

A fiscal note is a statement attached to a bill that estimates the financial impact of the legislation, including how much it will cost or generate if passed.

Question 14

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

Accepted Answer

The state comptroller provides a biennial revenue estimate at the beginning of each regular session, which is a projection of the state's revenue for the next two-year period. This is crucial for budget planning and appropriations.

Question 15

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

Accepted Answer

An appropriations bill is the type of legislation that specifies what spending the state will undertake. It authorizes the expenditure of government funds for specific purposes.

Question 16

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

Accepted Answer

The state comptroller reviews the budget to certify that the anticipated revenue will be sufficient to cover the appropriations, ensuring that the budget is financially viable and meets legal or regulatory standards.

Question 17

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

Accepted Answer

Texas uses a dual budgeting process where both the legislative and executive branches work together to propose, shape, and pass the biennial budget.

Question 18

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

Accepted Answer

Deferrals are a budget trick used by legislators to postpone or delay spending to future periods, effectively making room for increased spending in the current period by pushing some expenses into the future. This does not immediately impact the current budget, allowing for the appearance of more available funds.

Question 19

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

Accepted Answer

General revenue funds are where the state holds revenue before it is allocated for its specific purpose. These funds serve as the primary operating funds for the state, supporting the general needs and services provided by the government.

Question 20

The total amount of money the state can spend is called

Accepted Answer

Expenditures refer to the total amount of money the state is authorized to spend.

Quiz 13: Budget, Finances, and Policy