Since the public sector needs financial resources to operate and provide services for society, some system needs to be in place to support this funding.
The most successful system for getting funds from the profit-making sector to public institutions is taxation. It provides for an orderly transfer of private monies to public purposes. Fairer than tuition, rate bills, student fees.
Whether we agree or disagree, all citizens owe taxes. There are varying degrees. Because everyone pays taxes, ideally a good tax system creates equity among its citizens. Aleta will address the characteristics of a good tax system. Two principals - benefits received and/or ability to pay... Key question is “how” to determine a person’s economic well-being or “ability” to pay.
States assuming responsibility for financing education. Federal government passed legislation - Goods sold over internet are exempt from tax. NY, Rhode Island, NC have new laws requiring state sales tax on in-state websites. Feds claim an excise tax on “telecommunciation services” and some states on internet providers. Big debate on this... p.137
![Sources of Revenue (Chapter 5) ,[object Object],Financing Education in a Climate of Change](https://image.slidesharecdn.com/classpreso-110919141800-phpapp01/85/Class-preso-1-320.jpg)
![School Finance - like a coin Two sides: ,[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)