PLS 505--Public Economics (Dluhy)

Public Finance

I. Key Terms

• Tax Incidence
• Tax Burden
• Tax Capacity, Tax Effort
• Tax Increment Financing
• Special taxing districts
• Enterprize Zones, unrestricted capitalism
• Special Assessments
• Enterprise Funds
• VAT taxes
• Gambling, Lotteries

II. Situations requiring tax increases

· Beach re-nourishment

· Recession in the State

· County Welfare Hospital

· Repair of local infra-structure—roads, bridges

· Recreational facilities, environmental habitats, golf courses, sports arenas, convention centers

· Water and sewer lines, very expensive

III. Taxes and Economic Development (location, costs of doing business at site, workforce availability) Why usually locate next to expressway? Do not distort the marketplace and efficiency (Overtown). Would they move there anyway?

· Subsidize sporting arena

· Subsidize convention center

· High value added industry

IV. The Counter-factual---What would have happened if “x” had not been there? Comparison of what did appear after implementing the program? What would have appeared had the program not been implemented?

V. Taxing the Suburbanite---Why are consumption taxes and fees the best?

· Payroll tax

· Toll roads or limited access highways

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· Fees on everything, higher for non-residents (parking, zoos, museums, parks)