A. Federal Limitations 1. Interstate & Foreign Commerce: denies states 2. States can’t tax fed...

A. Federal Limitations1. Interstate & Foreign Commerce: denies

states 2. States can’t tax fed govt3. 14th Amendment- limits the usage of

taxes by fed govt

A. Every person must contribute in respect to their abilities

A. Sales tax: most states get 1/3 revenue from this

1. Some are exempt: food, medicine, newspapers, etc.

2. Regressive tax: not levied according to someone’s ability to pay (can’t tax on internet)

B. Income tax- yields another 1/3 of state’s revenues1. progressive tax: more you make, more they take

C. Property tax- chief source of local gov’t income

1. On a real person

2. Personal property- cars, books, computers, etc.

D. Inheritance or Estate Tax – “death tax”1. Inheritance- tax levied on heir’s portion of estate2. estate- levied directly on full estate

1. Severance Taxes: levies on removal of natural resources (timber, oil, fish, minerals, etc.)

2. Licensing & operating3. Documentary & Stock transfer

fees- recording, registering, transferring of mortgages, etc.

Pay-roll taxes Amusement taxes Cars Hunting Etc.

State-run liquor businesses

Toll roads

State-run lotteries

For major projects Issue bonds

State sets priorities Governor creates an executive

budget

Documents