LESS FEDERAL INVOLVEMENT

•Education•Drugs•Welfare •Crime

1.GOVERNOR2.LEGISLATURE3.GOVERNOR

•Budget must be balanced

•State spending cannot exceed state revenues

•RAINY DAY FUND: When revenues are high keep money aside

•Federal = income tax•State = various taxes, fees, federal grants, loans, and lotteries

http://images.google.com/imgres?imgurl=http://www.pcusa.org/stewardship/images/clipart/theme/varieties/1997/money.jpg&imgrefurl=http://www.pcusa.org/stewardship/clipart-varieties.htm&h=288&w=359&sz=32&hl=en&start=14&tbnid=0S6-GBTgGQ9h2M:&tbnh=97&tbnw=121&prev=/images%3Fq%3Dmoney%2Bclip%2Bart%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DG

•High tax rate discourages businesses from locating in our state

•Tax on the sale of a good or service

•Hotel Sales Tax = people are out-of-state

•Residents OKAY•May discourage vacations and conventions

•Liquor and cigarettes

•Levied on individuals and businesses

•Flat Rate – all people pay same

•Progressive Rate – depends on how much money you make

•Tax resources that are removed from the ground

•Tax on people who use a state service

•Funds schools, bridges, roads, etc.

•Helps in keeping state taxes lower

• BONDS: state is in debt to bondholder for that amount

• Bondholder receives interest