The Benefit Principle is an economic theory proposing that those who benefit from government expenditures, which are financed by taxes, should also be the ones to pay the taxes that finance them.
Taxable bonds issued by municipalities and designed to encourage spending on infrastructure and create jobs. The issuance of these bonds was authorized by the American Recovery and Reinvestment Act of 2009, and the program ended on December 31, 2009.
The Chartered Institute of Public Finance and Accountancy (CIPFA) is a professional association founded in 1885, primarily serving public-sector accounting professionals. CIPFA provides training, qualifications, and a community for those involved in public finance and accountancy.
CIPFA is the professional body for people in public finance, offering qualifications, training, and a range of support for those involved in public sector accounting and financial management.
A commuter tax is a form of income tax levied on individuals working in a jurisdiction different from where they reside.
The Comprehensive Annual Financial Report (CAFR) is the official annual report of a government entity, encompassing a wide array of financial statements and disclosures.
The debt ceiling is the maximum amount of money that the federal government is allowed to borrow. When the federal government approaches the ceiling, Congress must raise it in order to authorize additional borrowing and the issuance of new debt by the Treasury.
The debt limit refers to the maximum amount of debt that a municipality or other applicable entity can incur. It is a critical financial constraint that ensures entities do not exceed prudent borrowing levels.
A deficit occurs when expenditures surpass revenues, creating a shortfall that must be managed through measures such as borrowing or cost-cutting.
Taxation, the effect of which is intended to be borne by the person or organization that pays it.
Pertaining to public finance and financial transactions; relating to the public treasury.
A fiscalist is an economist who believes that government intervention in the economy, primarily through changes in taxation and government spending, is essential for managing economic stability and growth.
Full faith and credit refer to the comprehensive commitment of a government entity to use its taxing and borrowing power and other revenue sources to ensure the payment of interest and principal on its issued bonds.
In state and local governments, 'General Revenue' refers to the total revenue received, excluding revenue from utilities, sales of alcoholic beverages, and insurance trusts.
A government budget outlines the anticipated annual expenditures and revenue for goods and services, offering a financial framework for policy implementation and national economic health.
Government obligations refer to debts that a government owes to creditors, typically in the form of bonds. These obligations are crucial for funding government operations and projects.
Level debt service is a provision in a municipal charter stipulating that payments on municipal debt be approximately equal every year, making it easier to project the amount of tax revenue needed to meet obligations.
Local taxation is a form of taxation levied by a local government authority rather than by central government. In the UK, council tax and business rates are the main forms of local taxation.
A moral obligation bond is a tax-exempt bond issued by a municipality or a state financial intermediary and backed by the moral obligation pledge of a state government. The state's obligation to honor the pledge is moral rather than legal because future legislatures cannot be legally obligated to appropriate the funds required.
M-CATS, or Municipal Certificate of Accrual on Treasury Securities, is a type of zero-coupon bond issued by a municipality. These bonds do not pay periodic interest but are sold at a significant discount to their face value.
A Municipal Revenue Bond is a type of bond issued by municipalities to finance public works projects such as bridges, tunnels, or sewer systems. The principal and interest payments are supported directly by the revenues generated from the project.
Per-Capita Debt represents the total bonded debt of a municipality, divided by its population. It is a key metric used to assess and compare the debt burden of municipalities over time.
The pre-budget report (PBR) is an economic forecast and policy statement presented by a government as a precursor to the main annual budget, providing an update on the nation's economic situation, planned economic policy direction, and public finance projections.
The Public Sector Borrowing Requirement (PSBR) refers to the amount of money the government needs to borrow to cover its expenditures if these exceed its income. It serves as an economic indicator tracking the difference between government expenditures and income from taxes and other revenue streams, typically over a fiscal year.
Public Sector Net Cash Requirement (PSNCR) refers to the amount of money that the government needs to borrow in a specified period to meet its expenditures and obligations, after accounting for its income.
A Revenue Anticipation Note (RAN) is a short-term debt issue by a municipal entity, used to finance urgent needs and repaid with anticipated revenues such as sales taxes. Interest earned on RANs is generally tax-free for holders.
A Tax Anticipation Note (TAN) is a short-term debt instrument issued by state or municipal governments to finance immediate expenditures by borrowing against projected tax revenues. TANs help even out cash flow across fiscal periods and are repaid once the corresponding tax revenues are collected.
A tax rate is the percentage at which an individual or corporation is taxed. Tax liability is calculated by applying the appropriate tax rate to the tax base.
The means by which taxes are raised and collected in accordance with tax legislation.
A financial obligation whose interest is exempt from taxation by federal, state, and/or local authorities.
A transfer payment is a payment made by the government to individuals, which is not in exchange for goods or services. It includes payments such as Social Security benefits, unemployment insurance, and welfare.
