THE BUDGET
PRESIDENT PROPOSES (After agencies have proposed to OMB)
Agency baseline activity, agency desires, Prez priorities determine submission
LEGISLATURE DISPOSES (After president submits budget)
Relations between leg and executive, leg and agency, leg and politics determine
PRESIDENT OPPOSES (Can veto, rescind/defer after legislature approves budget)
President's priorities, presidential and legislative politics determine.
AGENCIES CARRY OUT (Can bend and shape a bit but not if Prez/Leg object)
Agency priorities, desire to make one or another program look good
COMPTROLLER'S/TREASURERS AUDIT (Financially and operationally)
TAXES AND REVENUE RAISING
GOVERNNMENT CAN TAX INCOME (Income tax, payroll taxes)
Can be progressive, regressive or proportional, usually somewhat progressive.
GOVERNMENT CAN TAX CONSUMPTION (Sales taxes, gasoline taxes)
Can be progressive, regressive, usually regressive.
GOVERNMENT CAN TAX WEALTH (Property taxes, inheritance taxes)
Can be progressive, regressive or proportional, usually all over map.
Issues: tax incidence (who pays), tax equity (how fair), administrative ease (cost of collection), revenue adequacy (will tax bring in what is expected), economic impact (do businesses flee, do consumers make different choices), and politics (will I get elected or unelected)