Revenue and Expenditures

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There are several factors that must be reviewed prior to planning an elaborate budget for an individual, a business, or a government entity. Public budgeting is one of the most important duties our government is responsible for. There are three levels in which budgeting must be maintained: local, state, and federal government. Depending upon the level of the government agency, many things may be different such as expenditures and revenue sources, the type of financial analysis tools used, and the reasoning behind particular financial decisions. One revenue source that is consistent throughout local, state, and federal government agencies is taxes. The act of taxing is explained as “a non-exchange transaction or event that eliminates any direct association between both the amount and quality of the services a constituent receives from the government, as well as the amount the constituent pays to the government” (Freeman, et. Al, 2011). Essentially, individuals are required to pay taxes without actually receiving a direct good or service from the government in exchange. Taxing occurs at various levels including but not limited to: corporate taxes, individual, property, vehicle-license, payroll, sales, and jail taxes. Local government agencies such as Maricopa County, Arizona, receive property taxes which account for a large amount of income. The rate is calculated based upon the property value and the amount of land. Property taxes are utilized to help with funding for local law enforcement, parks, libraries, improving public roads/transportation, and structuring public education systems. According to taxrates.org, Maricopa County has a median property tax rate of approximately $1,418 annually. This amount may fluctuate slightly depending upon the needs of the county and the property value being assessed. The first payment for property taxes in Arizona becomes due in October and the second half is due in March. State agencies rely heavily upon sales taxes as a...
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