Here is a hypothetical situation: Suppose in the November election next year, there will be an initiative on Arizona’s ballot. This initiative contains two parts: 1) state personal income tax should be eliminated in Arizona, and 2) state legislature can raise additional taxes to replace the lost revenue only with voter approval.
Suppose your neighbor, a typical middle-class person with two children in grade school, who knows very little about state and local finance and budget, is considering voting for the proposition. He loves the idea of not paying state income tax, but he also thinks it seems too good to be true. He is coming to you because he knows you are currently taking a course on state and local public finance, and asks you to explain to him what this all means.
I have uploaded the full version of instruction to the file; also, I have uploaded the textbook and the class notes as well. Use them if you need it.
Please read the instruction carefully and write this essay with details analysis. Do not make a lot of very general and broad comments. Try to be specific in your analysis, and use numbers and data wherever you can. When there are public finance theory or principles involved, please also explain them. Also try to be comprehensive in your analysis, covering every aspect of state and local finance that might be affected by this proposition, in terms of both revenue and programs. Try to draw on everything we have covered in this class. Because you are explaining this to your neighbor, as opposed to me, don’t assume he knows everything you are saying, especially when it comes to some public finance jargons.
Thank you
Assignment 3
