The finance of state and local government

In the usa

(1) The expenditures of State and Local governments in the United States have considerably grown these years. Concentration of large numbers of people in urban areas has contributed to the growth in public services and put additional pressures on local governments. Financial pressures are most severe in larger cities where such problems as crime and poverty have their most serious economic and social consequences.

(2) In their attempts to raise revenue, state and local governments levy a variety of taxes on their inhabitants. A tax is a compulsory payment to a government imposed on property, services and goods. State governments broadly use income tax and sales tax. For local governments the general property tax continues to be the major source of revenue. The sales tax is especially attractive to state and local governments because it is easy to administer and substantial amounts of money are collected. Though general property tax is often criticized for its inefficiency (inadequate assessment of property, poorly trained assessors) it contributes the majority of financial support for police and fire protection, street maintenance, sewage disposal and other municipal services.

(3) Many state and local governments receive money from special service charges, e.g., California receives more than $ 50 million a year from hunting fees. Other states get money from lotteries and gambling (Nevada). States also collect other fees: from automobile and drivers licenses, from parking metres and fines, inheritance and gifts. Many states impose taxes on gasoline, liquor, cigarettes and tobacco products. However, some states are reluctant to raise taxes, fearing that it might discourage business activity or cause a mass escape of industry and middle class residents to regions where taxes are lower.

(4) State or local governments may also issue bonds or borrow money from the bank if tax revenue is insufficient to meet general operating costs or if they wish to finance major programs such as industry development, building schools or highways. Bonds are generally most attractive to wealthy investors.

(5) Poorer states are aided by the system of federal grants-in-aid, which distributes more money to them than to the richer states. Actually, a grant-in-aid is a sum of money provided by the American government for the purposes of fulfillment of some public important program. Moreover, in America there exist strict constitutional limits on taxation, which prescribe the amount of taxation and the procedures of tax administration.

СЛОВАРЬ АКТИВНОЙ ЛЕКСИКИ:

revenue (n) доход, прибыль, выручка; доходная статья бюджета

put pressures создавать затруднения

financial pressure зд. потребность в финансировании

levy a tax взимать налог, облагать налогом

income tax подоходный налог (налог на прибыль предприятий,

организаций, юридических лиц, осуществляющих

предпринимательскую деятельность)

sales tax налог с оборота ( товары массового потребления

и услуги предприятий сферы обслуживания)

property tax налог на недвижимое имущество

general property tax налог на все виды собственности

assessment оценка (недвижимого имущества) в целях

налогообложения

municipal services коммунальные услуги

inheritance tax налог на наследство

cause (v) вызвать что-то, привести к чему-то

issue bonds (v) выпускать облигации

grants-in-aid (n) целевые средства, выделяемые правительством

США из налогов для штата или муниципалитета

под определенную программу.