In the section, you will examine the sources of revenue at the state and local levels for Georgia to pay for various government services. Misuse of public funding is often tempting to local representatives and a common problem in our government system. It is important that purchases and projects undertaken by the government fall under one of the 16 governmental services mapped out in the Constitution. There are many sources of funding for government services.
1. You need to completer the graphic organizer below. You will list briefly describe, and include a specific example source of revenue for each category. (8 category)
2. Identify 2 possible sources of revenue that would most likely be appropriate to provide the funding for your issue of concern. You justify why you believe this would be an appropriate source of revenue for your issue.
1. Taxes
- Description: Taxes are compulsory contributions to government revenue, levied by the government on income, profits, property, sales, etc.
- Example: Sales Tax
2. Fees and Charges
- Description: Fees and charges are payments required by the government in exchange for a service or license.
- Example: Vehicle Registration Fees
3. Grants
- Description: Grants are funds given by the government to support a specific project or program.
- Example: Federal Grant for Education
4. Bonds
- Description: Bonds are a form of borrowing by the government, where investors lend money in exchange for periodic interest payments and the return of the original investment at a set date.
- Example: Municipal Bonds for Infrastructure Projects
5. Lottery Revenue
- Description: Lottery revenue comes from the sales of lottery tickets, with proceeds going towards government programs and initiatives.
- Example: Georgia Lottery for Education
6. Investment Income
- Description: Investment income is generated from government investments in stocks, bonds, and other financial instruments.
- Example: Interest Earned on Government Savings
7. Fines and Forfeitures
- Description: Fines and forfeitures are penalties imposed by the government for violations of laws or regulations.
- Example: Traffic Ticket Fines
8. Inter-governmental Revenue
- Description: Inter-governmental revenue is funding received from other levels of government, such as federal grants or state appropriations.
- Example: State Aid for Transportation Projects
For my issue of concern, which is improving public transportation in Georgia, two possible sources of revenue that would be appropriate are:
1. Sales Tax: Implementing a small increase in the sales tax specifically allocated towards funding public transportation projects would be appropriate, as it is a broad-based tax that can generate a significant amount of revenue from the population at large, including tourists and visitors who utilize public transportation.
2. Grants: Seeking federal grants for public transportation infrastructure improvements would also be appropriate, as it aligns with the goal of enhancing public transportation services and could provide additional funding without increasing the burden on Georgia taxpayers.