Poli Sci 101 Final Exam Review PDF

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Poli Sci 101 Final Exam Review...

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https://quizlet.com/17402219/poli-101-final-exam-flash-cards/ Key Terms: 1. Tax progressivity/regressivity ○ Regressive Tax - A tax in which the rate falls as the base or taxable income rises, advantaging those with higher income ○ Progressive tax - a tax in which the rate rises at the base or taxable income rises, advantaging those with lower income 2. Flat tax ○ Also known as a proportional tax; a tax in which people pay an identical rate regardless of income or economic transaction 3. Sales tax: General Retail and Selective ○ Sales Tax: a tax paid to a governing body for the sales of certain goods and services → it is most popular by voters because everyone has to pay the same rate and it’s a regressive tax but can be volatile ■ General Retail - are the normal taxes on ALL goods and services we use ■ Selective - taxes on specific items such as tobacco, cigarettes ● Every state collects some revenue from selective sales taxes with the average revenue accounting for 8% of state and local ownsource general revenue ○ There are 45 states (and the District of Columbia) that have general taxes applying to all goods and services ○ There are 38 states that allows sales tax on local level ○ And many states apply sales taxes to particular goods, typically tobacco, alcohol and motor fuels

○ 4. Individual Income Tax

○ Not every state has it, but the states that do have it: ■ Tends to be a progressive tax ○ A levied tax on the wages, salaries, dividends, interests, and other income a person earns throughout the year ○ It is moderately popular, more progressive and more stable ○ The tax is generally imposed by the state in which the income is earned ○ Generally state and local governments collected a combined $368 billion in revenue from individual income taxes in 2015 ○ Individual income taxes are a major source of revenue for states but they provide relatively little revenue for local governments ○ Most individuals do not pay tax on all their income - there are deductions which taxpayers subtract from their gross income to determine their taxable income ■ Example: If a taxpayer earns $100,000 in income and qualifies for $20,000 in deductions, the IRS only taxes the remaining $80,000 5. Corporate Income Tax ○ Taxes levied by the US federal government and by states on business profits to raise taxes ○ After operating earnings is calculated by deducting expenses including the costs of goods sold and depreciation from revenues, enacted tax rates are applied to generate a legal obligation the business owes the government ○ Typically always due by March 15 and usually a flat rate ○ Corporate income tax is the third largest source of federal revenue and raised $343.8 billion in 2015 ○ Many US businesses are not subject to the corporate income tax, rather they are taxed as “flow-through” entities → flow-through businesses do not face an entity-level tax 6. Property Tax ○ A tax assessed on real estate and is usually based on the value of the property you own and is often assessed by local or municipal government ○ Fundamental source of revenue for local governments - states receive less than 2% of their total revenue from this tax ■ The tax is then used primarily for repairing roads, building schools, snow removal or other services that benefit the majority of the people ○ Almost all property taxes are levied on real property (which is a property that has been legally defined and classified by the state apparatus) ○ Originally it was a progressive tax because the rich owned land and the poor didn’t but now it’s more of a regressive tax because poor people are paying higher proportions of income 7. Earmarked Tax ○ A tax whose revenues are reserved solely for a specific group or usage

■ Money raised for that tax has to go to a certain thing, raised for a specific purpose. i.e : money raised by the gas tax goes to funding highway projects. ○ It generally means to set funds aside for a particular project ○ In Congress it is a longstanding and controversial practice in the US Congress where parties have historically won support for contentious votes by offering r threatening to revoke funds for projects in particular members’ districts 8. User Charges ○ Asking people directly using a service to pay for it (tuition, toll, hospitals) ■ It is increasingly popular with opinion polls because people don’t like to be paying for other people’s services ■ It is frequently used now because other tax limits are imposed and the burden shifts from the whole population to those who use the good or service ○ User chargers make up a significant amount of local governments revenue ○ But because service users must be identified and charged some fees can be difficult to administer - political accountability is low 9. Severance Tax ○ A tax imposed on the removal of nonrenewable resources such as crude oil, condensate and natural gas, coalbed methane and carbon dioxide ■ It is charged to producers or anyone working in oil or gas operations ○ Different states have different rules but it is important to not that severance tax is different from income tax (you still have to pay all federal and state income taxes in addition to severance tax) ■ Only about 10 of the 38 states that collect severance tax collect 90% of all severance tax revenues ○ Alaska, North Dakota, and Wyoming collect about half of their revenue from severance taxes on coal, oil, and gas ○ They are popular in states rich in natural resources because they help keep income, property and sales taxes relatively low ○ BUT if the state is too dependent on the severance tax for revenue and and the price or supply of the natural resource declines then the economy doesn’t do so well 10. Lottery ○ A game of chance used for decision making situations ○ Typically used to raise money for good causes such as new schools, highways, canals, and bridges ○ But in 1895 they got banned because state governments were mismanaging the system but they came back in 1963

○ They help relieve pressure on major taxes → they generate a small percentage of state's total revenues - they are a regressive way to raise money ○ Participation is higher among African Americans, Latinos, males, seniors and those with low levels of education 11. Rainy Day fund ○ Saving accounts created by states to help insulate budgets from fiscal distortions caused by inaccurate data or faulty economic assumptions ○ They alleviate revenue shortfalls and help to avoid imposing tax and fee increases - typically states fill up their contingency funds to as much as 10% of total spending ○ During the recession in 2008-2011 many states had to dig deeply into their rainy day funds to retain essential services ○ Very hard for local governments to balance this budget because of their lack of economic diversity and sensitivity to economic dislocations 12. General Obligation bonds ○ A debt instrument supported by the full financial resources of the issuing jurisdiction ○ This is a type of bond that is used for long-term borrowing → both local and state governments are able to finance bonded indebtedness at significantly lower rates than corporations ○ Principal and interest payments on general obligation bonds are secured by the full faith, credit and taxing power of the state or local jurisdiction issuing them ○ They are used for financing public projects such as highways, schools, and hospitals ○ Lenders are guaranteed repayment as long as the bond-issuing government is solvent; defaults are nonexistent but downgrades of cities’ creditworthiness occur from time to time 13. Revenue bonds ○ A bond paid off from income derived from the facility built with the bonds proceeds ○ Backed by expected income from a specific project or service → examples: toll bridge, a municipal sewer system, or sports complex ○ They have a higher interest rate because they represent a riskier investment than general obligation bonds 14. “Smokestack Chasing”/ “Chip Chasing” ○ Chip Chasing: ■ Providing economic incentives to appeal to a particular business (states bid)

○ Smokestack Chasing: ■ States competing for an overall industry within the state ○ The economic development policy of attracting existing firms from somewhere else, either to relocate to a particular area or to build new facilities there, using financial inducements and tax incentives ○ It spread to the south in the 1970s - states raided other states for industry and has intensified to an international level 15. Stadium chasing/film chasing (examples of specific industries that fall under Smokestack Chasing) ○ Stadium Chasing: ■ Sports industries ○ Film Chasing: ■ Movie industries ○ Same thing as smokestack chasing but state and local governments are trying to get sports teams or movies to be filmed in their region in order to generate revenue for their state/locality 16. Business incentive packages ○ The enticements that state and local governments offer to retain or attract business and industry ○ This problem has developed because of the fundamental relationship between a federal system of government and a capitalist economic system ○ Capital is mobile so business firms can move from one location to another and because governments want to keep companies in place they often offer incentives ■ The impact of incentives on a firm’s decision isn’t necessarily clear but jurisdictions believe that they cannot afford not to offer them ■ But people are worried that this is counterproductive and too costly for the government ○ Example: the automobile industry → Amazon’s new headquarters - Chicago is offering a $2.25 billion incentive package, Illinois went 2 years without a budget but was able to offer a bid ■ This concerns citizens because they need to be looking more closely at tax breaks, low interest loans and infrastructure development 17. Clawbacks ○ Requirements that subsidized firms repay some or all of the subsidy if they fail to deliver on their promises ○ Example: United Airlines and its new maintenance facility in Indianapolis - to attract United to Indiana the state offered the company a deal that contained $300 million in assorted tax breaks but with several clawback provisions 18. Economic Development

○ A process by which a community, state or nation increases its level of per capita income, high-quality jobs, and capital investment 19. Venture capital ○ Special funds earmarked for new, innovative businesses that cannot get conventional financing 20. Infrastructure 21. The Creative Class/cool Cities 22. State support of infrastructure ○ Funded through the gas tax ○ Funds that are raised are earmarked for the construction of highways 23. Global warming solutions act of 2006 24. Brown vs. Board of Education of Topeka (1954) 25. Intrastate Inequity in School Financing ○ Differences in funding within states ■ i.e Durham vs. Chapel Hill ○ The state provides a certain amount of funding for every district (same amount of funding) ■ Then, those separate districts/towns are allowed to raise further money through property taxes, or fundraising 26. Interstate inequity in School Finance ○ Differences in funding between different states ■ i.e state funding in NC vs. state funding in Texas 27. School choice ○ A market based approach to education improvement that permits parents and students to choose which school the child will attend - examples include charter schools and voucher programs 28. Open enrollment ○ An option that permits students to attend a public school of their choice within a designated jurisdictional area. The intent is to increase educational options for all children 29. Voucher plans ○ An arrangement in which the state or school district subsidizes tuition for students to enroll in a school of student/parent choice 30. Charter schools ○ An alternative public school established by contract with a sponsoring agency, school district, business or other organization 31. No Child Left Behind act of 2001 ○ Signed by George W Bush an act to get 100% of students reading and writing at grade level by 2014 (still have yet to reach that goal) ○ It effectively scaled up the federal role in holding schools accountable for student outcomes

■ Outcomes based on how well the school performs ○ Has since been replaced with the ‘Every Student Succeeds Act’ in 2015 ○ Was the product of a collaboration between civil rights and business groups as well as both Democrats and Republicans ■ They wanted to advance American competitiveness and close the achievement gap between poor and minority students and their more advantaged peers ○ It put a focus on ensuring that states and schools boost the performance of certain groups of students, such as English-language learners, students of special education and poor and minority children ○ States don’t have to comply with NCLB requirements but if they don’t they risk losing federal Title I money 32. “Race to the Top” ○ Program created under President Obama in 2009 ■ Mandated that states that needed certain requirements, there would be more funding ○ Signed by President Obama and the largest-ever federal competitive investment in school reform ○ It will reward states for past accomplishments, create incentives for future improvements and challenge states to create comprehensive strategies for addressing the four central areas of reform that will drive school improvement; ■ Adopting internationally standards and assessments preparing students for success in college and the workplace ■ Recruiting, developing, retaining and rewarding effective teachers and principals ■ Building data systems that measure student success and inform teachers and principals about how they can improve instructions ■ Turning around lowest-achieving schools ○ Race to the Bottom: ■ Lowering of tax rates within the state to attract more business 33. Common Core ○ Educational initiative that details what K-12 students should know in English language arts and mathematics at the end of each grade ○ Competency testing for basic skills and subject matter has been another widely adopted reform → all states now test students at several grade levels to monitor progress in the basics ○ They are conceived, developed and coordinated by the governors and chief state school officers ○ Federal government offers grant funds to states willing to implement CCS

○ But people believe that they reflect national priorities and amounts to federal overreach not state and local priorities 34. Federal/state/local roles in education funding ○ Federal role is very limited in education funding 35. Determinate sentencing 36. Parole/Problem 37. Correlation of crime rate and incarceration rate 38. Capital punishment and state variations in its use 39. Private prisons 40. Poverty line 41. Means tested programs/non-means tested programs in social welfare ○ Means tested programs: ■ You have to meet certain criteria to be allowed in the program ○ Non-means tested: ■ Programs that you do not have to meet any criterias for ● You could be a millionaire, and still be allowed to have Medicare because you are over 65 42. Public assisted programs vs. social insurance programs ○ Public Assisted Programs: ■ Meant to ALLEVIATE poverty ● Ex: SNAP program, food stamps ■ Means tested ○ Social Insurance Programs: ■ Intended to PREVENT poverty ● Medicare, Unemployment programs, ■ NOT means tested 43. Medicaid vs. Medicare Programs 44. SSI (Supplemental Security Income) ○ Meant to alleviate poverty ○ Typically used for people with disabilities and old people 45. Social Security Program 46. Food Stamp program (SNAP) 47. CHIP program 48. In-kind programs vs. cash programs 49. TANF ○ Temporary Assistance for Needy Families - a provision of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 which replaced the AFDC with a flexible program that allows states to set their own conditions and benefit levels for welfare recipients to help them secure and maintain employment

○ Mostly Federally funded but run by the states which added some additional funding ○ There was a lot more flexibility for the states with this new plan and offered benefits other than cash ○ But everyone who qualified not always received benefits ○ There are dramatic variations among the states on the level of social welfare spending → states run by a Democratic party are more generous than those run by a Republican party 50. Affordable Care Act of 2010 51. Medicaid expansion ○ Under the ACA, states HAD to expand Medicaid ■ In 2012, US Supreme Court said it was unconstitutional for the Federal government to mandate that states had to expand Medicaid ■ States that chose to expand received 100% of the funding for Medicaid until 2020. 52. Individual mandate ○ Government compels you to have insurance or risk tax penalty 53. Health benefit exchanges 54. Regulation of natural monopolies ○ Power/electricity/water ■ Considered a natural monopoly because it is considered more efficient to only have on company providing these services 55. Regulation of negative externalities ○ A cost that a third party has to pay/suffer from ■ Even though we have no control over pollution from large plants, we still suffer the consequences from the effects in has on the environment ○ Carbon tax 56. Regulation in name of equity ○ Ownership in the equity of some part of a company ■ Security, stocks and bonds 57. NIMBY ○ Not in my backyard - the public desire to keep unwanted facility out of a neighborhood ○ Because there have to be more disposal storage sites the price has also risen - the disposal fees have tripled in many localities ○ States have to ship their waste across state lines to find an open dump site 58. Brownfields ○ Abandoned industrial sites with real or perceived environmental contamination ○ Term was created in 2001 when the Superfund was finding troublesome sites in need of immediate cleanup

○ There was an increased funding levels for the program which expanded the role of state governments allowing them to select cleanup remedies. 59. Partial pre-emption in environmental policy 60. Environmental justice 61. Fracking 62. Cap and Trade plans ○ There is a CAP on how much gas each company can emit ■ However, if they want to surpass their limits, they can buy/sell/trade permits that allow them to emit more gas then their allowed CAP. 63. Regional Greenhouse Gas Initiative 64. Policy Game vs. Budget Game: ○ Policy game: ■ Legislature has more power in the Policy Game ○ Budget Game: ■ Governor has more power in the Budget Game ● Action-enforcing deadline to pass the state budget, so Legislature cannot stall and does not have the upper hand

Review Session Notes: ● ● ● ●

30 Multiple Choice Questions (30 points) → NOT cumulative 2 Short Essays (50 points) → Can be cumulative, WILL come from the study guide Application Essay (20)→ Possible Essay Question: ○ Reforms in State Legislatures in 1990s ■ Rules that govern legislatures ■ Deprofessionalization ○ Voting Patterns Across States ■ What factors can we think of that influence turnout? ■ State reforms that can either increase or decrease turnout ● Would not give answers, due to the fact that it is an essay question, but: ○ Voter ID laws ○ Early voting/Same day registration ■ NEED to explain how variation BETWEEN states on voter reforms and HOW they affect voter turnout ● Intervention of courts in regards to the 14th amendment → voting discrimination against minorities ○ Competitors to Parties: ■ Interest Groups

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Think about ways in which Interest Groups can influence outcomes: how do they participate in the electoral process? ● How are they involved in politics? ○ Can endorse a candidate: $ ○ Lobbying Techniques: ■ You want to get a certain policy passed, how do Interest Groups do that? ● Read chapter on Interest Groups, ways in which they advocate for policies Application Essay: ○

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Why? ● Generational differences: ○ Immigrant/Minority Population ● Economic Factors ○ Cost of living, property taxes ● Political: ○ Conservative states ■ Spend less in general on education, not part of their political philosophy ■ Lowering of taxes

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Privatization Spending varies between states Transportation costs

Essay Question Outlines: 1. Recent wave of voter ID Laws...