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Where Does the Money Come From? Questions and
100% Correct Answers UPDATED!!!
Where does the money come from? - ANSWER - Through taxes
and other revenue sources that the gov. collects the money it
needs to run things.
- Through spending that the government responds to the
demands of the people.
- If you want to know what the priorities are just to look at
where the money is spent.
Tax Payer Revolt - ANSWER A revolt in the late 1970s, where
states were trying to shut down budget deficits with ever
increasing property taxes ignited a "taxpayers revolt"-
particularly in CA with Proposition 13 in 1978.
Proposition 13 - ANSWER - In 1978, CA voters implemented
Proposition 13 as a constitutional amendment by 2 to 1 margin.
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- Froze real estate taxes at 1% of the 1976 value and limited
increases to 2% a year.
- Required a 2/3 majority vote for most new taxes or bonds at
the local level.
- Said the state legislature needed a 2/3 majority to raise
statewide taxes.
How did Proposition 13 impact California? - ANSWER - Shifted
the tax burden from business to residential property owners,
and made CA more reliant on state income taxes for revenue.
- Income tax revenue went from 18% of the budget in 1962 to
48% by 2002.
- Proposition 13 made property tax reduction an important
issue nationwide and triggered similar actions in over a dozen
states.
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- It also set off the nationwide movement for a constitutional
amendment to balance the budget.
- Massachusetts followed suit in 1980 with Proposition 2 1/2.
Explain the Economic Boom of the 1990s. - ANSWER - Due to
the economic boom in the 1990s, states cut taxes while
increasing spending for education, prisons, and aid for the poor.
- The 90s were good for state and local governments with large
tax revenues. Income and sales tax added to the boom for
greater state and local government operations.
- By 2000, after a long period of budget expansion, many states
had a budget surpluses--29 states enacted tax cuts totaling 7B
by 1999.
- Between 1997 and 2002, state spending grew 67%.
Where Does the Money Come From? Questions and
100% Correct Answers UPDATED!!!
Where does the money come from? - ANSWER - Through taxes
and other revenue sources that the gov. collects the money it
needs to run things.
- Through spending that the government responds to the
demands of the people.
- If you want to know what the priorities are just to look at
where the money is spent.
Tax Payer Revolt - ANSWER A revolt in the late 1970s, where
states were trying to shut down budget deficits with ever
increasing property taxes ignited a "taxpayers revolt"-
particularly in CA with Proposition 13 in 1978.
Proposition 13 - ANSWER - In 1978, CA voters implemented
Proposition 13 as a constitutional amendment by 2 to 1 margin.
,2|Page
- Froze real estate taxes at 1% of the 1976 value and limited
increases to 2% a year.
- Required a 2/3 majority vote for most new taxes or bonds at
the local level.
- Said the state legislature needed a 2/3 majority to raise
statewide taxes.
How did Proposition 13 impact California? - ANSWER - Shifted
the tax burden from business to residential property owners,
and made CA more reliant on state income taxes for revenue.
- Income tax revenue went from 18% of the budget in 1962 to
48% by 2002.
- Proposition 13 made property tax reduction an important
issue nationwide and triggered similar actions in over a dozen
states.
, 3|Page
- It also set off the nationwide movement for a constitutional
amendment to balance the budget.
- Massachusetts followed suit in 1980 with Proposition 2 1/2.
Explain the Economic Boom of the 1990s. - ANSWER - Due to
the economic boom in the 1990s, states cut taxes while
increasing spending for education, prisons, and aid for the poor.
- The 90s were good for state and local governments with large
tax revenues. Income and sales tax added to the boom for
greater state and local government operations.
- By 2000, after a long period of budget expansion, many states
had a budget surpluses--29 states enacted tax cuts totaling 7B
by 1999.
- Between 1997 and 2002, state spending grew 67%.
