PADM 5400/5420 MPA Comp Exam Questions & Answers 2024/2025
How do managers promote stability during economic cycles? - ANSWERS"diversification in the property tax base and revenue sources and on the flexibility in spending...[generally leads to]...more stable operating budgets" (Bland, 2013: ...
How do managers promote stability during economic cycles? - ANSWERS"diversification in the property
tax base and revenue sources and on the flexibility in spending...[generally leads to]...more stable
operating budgets" (Bland, 2013: 10).
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Bland's 3-Legs of Balanced Tax policies
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Bland's Laws of Taxation
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Bland's 7 Suggestions for Making Revenue Decisions
How to Achieve a Balanced Tax Policy (aka Bland's 3-Legs of Tax Policies) - ANSWERS1) Equity (What is
fair?)
2) Neutrality (What is economic efficiency?)
3) Tax Administration (How much does it cost to collect, enforce, and comply with?)
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,***Trade-offs exist between the three (for more info see Bland's 7 suggestions for making revenue
decisions)
Bland's Laws of Taxation
(Lecture Notes: Session 4) - ANSWERSFirst Law of Taxation: The greater the equity in allocating the tax
burden the greater the complexity of the tax code. (Lecture Notes Session 4)
Corollary: The greater the complexity of the tax code, the higher the administrative and compliance
costs. (Lecture Notes Session 4)
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Second Law of Taxation: The broader the base and the flatter the rate, the more neutral the tax. (Lecture
Notes Session 4)
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Third Law of Taxation: The more heavily a tax is used, the more appropriate its economic deficiencies.
(Lecture Notes Session 4)
3-Legs of Balanced Tax Policies: Equity (What is fair?) - ANSWERSHow should the tax burden be
measured?
First Law of Taxation: The greater the equity in allocating the tax burden the greater the complexity of
the tax code. (Lecture Notes Session 4)
Corollary: The greater the complexity of the tax code, the higher the administrative and compliance
costs. (Lecture Notes Session 4)
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Fundamental Elements of Equitable Tax Policy (Bland, 2013: 28-31):
"Benefits-based levies are the most defensible in terms of fairness. Tax favors to particularly vocal or
well-connected groups undermine the perceived equity of the revenue structure. Revenue polices
should ease the burden on the poorest and not punish the wealthiest. Tax fairness varies among local
communities, depending on their age, income distribution, and preference for public services" (Bland,
2013: 28).
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Hoizontal Equity - ANSWERSTreating individuals/businesses in similar circumstances the same (Lecture
Notes)
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What does "similiar" mean?
See:
, ~Uniformity clauses;
~14th amendment;
~Magna Charta-1215
(Lecture Notes Session 4)
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In PA uniformity defined in courts (Lecture Notes Session 4)
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What consititutes equal circumstances?
Majority/community decides what is equal/fair
***REMEMBER***
If you cut it now it'll still come back and someone else will have to pay for it (i.e., intergenerational
equity) (Lecture Notes Session 4)
Vertical Equity - ANSWERS"...variation in tax burden among taxpayers in different circumstances" (Bland,
2013: 27).
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"...how that burden varies across the spectrum of income comparable to the income statement" (Bland,
2013: 27).
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treating people in different economic circumstances differently (Lecture Notes Session 4)
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