Terminology:
ad valorem tax: Ad valorem is a Latin phrase that translates to “according to the value.” The essential characteristic of ad valorem tax is that it is proportional to the value of the underlying asset, unlike a specific tax, where the tax amount remains constant, irrespective of the underlying asset’s value. An ad valorem tax is commonly used in the taxation of real property. Ad valorem taxes are typically calculated on an annual basis, such as a local property tax
agenda setting: the "ability (of the news media) to influence the importance placed on the topics of the public agenda".[1] The theory suggests that the media has the ability to shape public opinion by determining what issues are given the most attention, and has been widely studied and applied to various forms of media. The study of agenda-setting describes the way media attempts to influence viewers, and establish a hierarchy of news prevalence.
appraisal: Each appraisal district determines the value of all taxable property within the county boundaries. Tax Code Section 25.18 requires appraisal districts to reappraise all property in their jurisdictions at least once every three years.
distributive policy: the propensity of the United States Congress to lean towards distributive politics, especially to gain political support and credit claim.[1] Through the distributive tendency, Congress’ bills evolve over the drafting process to become more broad and reaching with their benefits.[2] Legislation that follows the distributive tendency has benefits that flow to many districts and can come in many forms, though in current day they are often monetary.
excise tax: Excise taxes are taxes imposed on certain goods, services, and activities. Taxpayers include importers, manufacturers, retailers, and consumers, and vary depending on the specific tax. Excise taxes may be imposed at the time of:
- Entry into the United States, or sale or use after importation
- Sale or use by the manufacturer
- Sale or use by the retailer
- Use by the consumer
fiscal policy: Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty. The role and objectives of fiscal policy gained prominence during the recent global economic crisis, when governments stepped in to support financial systems, jump-start growth, and mitigate the impact of the crisis on vulnerable groups.
franchise tax: The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax. These entities include: corporations; limited liability companies (LLCs), including series LLCs; banks; state limited banking associations; savings and loan associations; S corporations; professional corporations; partnerships (general, limited and limited liability); trusts; professional associations; business associations;
general sales tax: Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.
income tax: a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.
“pay-as-you-go” system: Texas Constitution, Article III, Section 49a. Requires that all appropriations are within available revenue in the fund from which the appropriations are made.
Permanent School Fund: a sovereign wealth fund which serves to provide revenues for funding of public primary and secondary education in the US state of Texas.[2] Its assets include many publicly owned lands within Texas and various other investments; as of the end of fiscal 2020 (August 31), the fund had an endowment of $48.3 billion.
policy: a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions. a high-level overall plan embracing the general goals and acceptable procedures especially of a governmental body
“a law, regulation, procedure, administrative action, incentive or voluntary practice of governments and other institutions.”
policy adoption: policy adoption is a part of the decision to choose policy alternatives after the policy formulation process. Mostly, the policy adoption process is influenced by internal and external determinants, often called policy diffusion. These determinants are each associated with elements that influence a government's decision to adopt a policy.
policy evaluation: Policy evaluation applies evaluation principles and methods to examine the content, implementation or impact of a policy. Evaluation is the activity through which we develop an understanding of the merit, worth, and utility of a policy.
policy formation: Public policy formation is the study, creation and implementation of laws, regulations, funding priorities or other actions on a specific public issue by a local, state or federal government.
policy implementation: Implementation means to carry out, to fulfill, produce, and compete. This is different from creating a policy. A policy is often a broad statement of goals, without specific objectives. There is often no specific implementation plan that names actors, actions, and desired results. A policy is often more of a hypothesis; implementation converts a policy into an action program. Policies grow out of ideas, often with multiple and possibly conflicting vague goals. Policies point to a desired causal chain of events, between initial conditions and desired future consequences. Implementation is the action plan to bridge the gap between the two. Implementation may be carried out by formal as well as by informal actors, including legislators, courts, bureaucracies, pressure groups, community organizations, and even individuals.
progressive tax: A progressive tax involves a tax rate that increases (or progresses) as taxable income increases. It imposes a lower tax rate on low-income earners and a higher tax rate on those with a higher income. This is usually achieved by creating tax brackets that group taxpayers by income range.
property tax: Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax. It is calculated by a local government where the property is located and paid by the owner of the property. The tax is usually based on the value of the owned property, including land. However, many jurisdictions also tax tangible personal property, such as cars and boats. The local governing body will use the assessed taxes to fund water and sewer improvements, and provide law enforcement, fire protection, education, road and highway construction, libraries, and other services that benefit the community.
redistributive policy: Redistributive policies are an essential component of strategies for reducing inequality and promoting sustainable development in its three dimensions: economic, social and environmental. They represent a powerful policy instrument for improving equality of outcome through the redistribution of income and for enhancing equality of opportunity by improving the distribution of income-generating assets, such as human capital and wealth (including land and industrial and financial capital) across individuals as well as between the private and the public sector.
regressive tax: a tax that is applied uniformly regardless of income. Regressive taxes take a larger percentage of income from low-income earners than from middle- and high-income earners. As such, the tax burden decreases with regressive taxes as income rises. It is contrasted with a progressive tax, which takes a larger percentage from high-income earners. Common forms of regressive include sales tax, gas tax, and payroll tax.
regulatory policy: Governments influence and control the markets using different tools. There’s the monetary policy, in which the governments affect market movements by changing the influx and availability of currency. There are fiscal policies, which define what type of business activity will be encouraged and supported. Then there is the regulatory policy – where the government creates administrative law and regulatory policy to regulate business activity. Regulatory policy is much more direct than either fiscal or monetary policy, because it explicitly restricts and permits business activities and defines limits of acceptable processes and strategies.
severance tax: Severance tax is a state tax imposed on the extraction of non-renewable natural resources that are intended for consumption in other states. These natural resources include such as crude oil, condensate and natural gas, coalbed methane, timber, uranium, and carbon dioxide.
sin tax: A sin tax is an excise tax on specific goods and services due to their ability, or perception, to be harmful or costly to society. The tax comes at the time of purchase. Some items that often have a sin tax include tobacco products, alcohol, and gambling. Sin taxes seek to deter people from engaging in socially harmful activities and behaviors. They also provide a source of revenue for governments.
subsidies: A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks). The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.
tax expenditures: Tax expenditures include the exemptions, deductions, and credits you take when you file your federal tax return. They also include the nonwage benefits that are untaxed, like employer-paid health insurance premiums and 401(k) contributions. So two people with the same income can pay very different tax rates depending on which tax expenditures they qualify for. Corporations benefit from tax expenditures, too.
Tax expenditures lower the revenue going to the federal treasury. Because they are often justified in the name of achieving specific social goals, tax expenditures can be thought of as a form of indirect spending: Instead of spending directly on groups or activities, the federal government gives up collecting some revenue in order to assist specific groups of people and encourage specific activities. Essentially Congress says, “You owe x, but the IRS will forget about it if you spend your money on y [child care, buying a home, building a factory, etc.].” Congress doesn’t have to pursue goals that way. It could instead say, “You owe x, and we’ll spend public money directly on helping you with child care and housing assistance or making productive investments.”
Without tax expenditures, the government could collect 44% more in taxes.
Tax expenditures lower the revenue going to the federal treasury. Because they are often justified in the name of achieving specific social goals, tax expenditures can be thought of as a form of indirect spending: Instead of spending directly on groups or activities, the federal government gives up collecting some revenue in order to assist specific groups of people and encourage specific activities. Essentially Congress says, “You owe x, but the IRS will forget about it if you spend your money on y [child care, buying a home, building a factory, etc.].” Congress doesn’t have to pursue goals that way. It could instead say, “You owe x, and we’ll spend public money directly on helping you with child care and housing assistance or making productive investments.”
Without tax expenditures, the government could collect 44% more in taxes.
