December 12, 2011
Public administrators across the United States of America strive to provide its’ citizens with programs and amenities for various purposes. Legislators create and enact programs such as the Community Development Block Grant Program that give a positive impact to individuals by creating jobs and rehabilitating poverty stricken neighborhoods that not only provide a community with hope but also stimulate economic growth of the economy. Local, state, and federal governments also provide its citizens with advantages of amenities such as recreational activities, upgrading of water …show more content…
Taxes on public utility have the potential to produce large amounts of revenue to allocate for improvements. Utility taxes can apply to cellular phones, cable television, and natural gas and of course electricity. These taxes appear in the form of sales tax, franchise tax, and gross receipts tax and have the potential to increase revenue by 69% (Schachtel, Glazer, and Bell, 2002).
User fees are another example of revenue sources that can generate the funding need to bridge the gap between the cost of expenditures and revenue. These fees apply to services that the public cannot do without such as toll charges and license fees for hunting or drivers licenses. When the user fee has pricing that matches the service, the public can value the financial worth of a government service (Smith and Lynch, 2004).
Deciding Revenue Resource Options
When deciding on which revenue resource options to use, consideration must be given to how it will affect the public, programs, and the government. For example, raising taxes can bring in substantial revenue. The poor economic environment may produce outcries to raising taxes but if the public finds the project essential they may accept tax increases. Cutting other service and programs to