1. Government Spending, Revenue, and Public Choice

2. Public Goods Non-rival
Parks, library, police, fire fighters, education

3. Tax Principles Benefits received tax principle
Gas tax gets used on roads, because those buying gas are the ones using roads
Ability to pay principle
Those who are able to pay are taxed more (income and property tax)

4. Tax Types Proportional Taxation- all incomes pay same percentage
Progressive Taxation- percentage in income tax increases as incomes increase
Regressive Taxation- percentage in income tax decreases as incomes increase
Marginal Tax rate- percentage change of each additional dollar of taxpayers dollars going to taxes

5. Tax Types Pollution Taxes
Sin Taxes (cigarettes, liquor, gambling, littering, disturbing the peace)

6. Federal Budget

7. State Budget

8. Local Budget

9. Local, state, and federal employment

10. International comparison

11. California

12. Representative Democracy
Maximizing Political Support
Role of Special Interest (PAC’s)
Rational Ignorance

13. Bureaus vs. Firms
Bureaus implement legislation
Firms are companies