Fiscal policies relate to the public revenue from taxation. They govern the financial positions of the state. The finances collected from the public are used for the development of the infrastructure and social amenities of the state. It is usually obtained from the citizens living within the state. Activities carried out contribute to a small percentage of a cut off from their gross pay in order to improve the services for their stay. The social programs supported by the state capital obtained from the tax collected include: energy, education, transparency, infrastructure and welfare.
Constitutional restriction on spending is governed by the taxation and revenue law from the Texas constitution. State clarifies residence homestead exception policy under the section 1-b of the constitution. State claims a particular amount of dollars that a residence can be excused, e.g. $ 3000 shall be exempted for state purposes for all residence homesteads. Under the section 1-e of the constitution restriction, no taxes shall be done for any property within the state under abolition of ad valorem property taxes. The constitution restricts the legislator under the section 7 from borrowing or withholding or diverting the finance purpose under borrowing, withholding or diverting special funds.
In the section 7-a, revenue from motor vehicle registration, fees and taxes on motor fuels and lubricants; purpose for which it is used. The constitution allows with an exemption on gross production and ad valorem taxes, on motor fuels and lubricant. In each county assessor shall be elected for the collection of the taxes. The constitution restricts the assessor to hold office for a period of four years, as he carries out the collection and monitoring of the taxation process found under the section 14-c.
Section 11 of the constitution states that all the owners of properties shall be assessed for taxation. All the properties are passed by the relevant officers in control for payments at the state offices. Section 7-b states that the use of all the revenues received from the federal government, reimbursed for the expenditure of the state, shall be used for the purposes intended.
Texas government supports several social programs within the county. The individual responsibility shapes the social welfare of the county. The state has no clear laws governing the responsibilities between the state and local government. Funding of the social welfare is done in the same manner countrywide using the regional offices distributed within the state.
Major income support programs are donation to families and Food Stamp programs. It does not take care of the elderly and disabled individuals within the state. The General Assistance programs are few within the state. The majority of the people fall under the 46% of government poverty line. In the USA, with Texas as a second largest state, Food Stamping programs contribute to benefit payments. They use it as a federal program with a well-designed structure for Food Stamp program and Aid to Families with Dependent Children for state benefits.
The state of Texas provides an opportunity for children with quality and affordable care; for parents with low income – to work. Applying TWC, low income parents are able to take care of their children as long as their poverty line falls below 150% level of income in the federal government. Under the new policy the Social Security numbers are required for data match using states welfare eligible system. Most of the immigrants will be blocked from assessing the child care offered by the state. State contribute fund serves approximately 63000 children, majority of whom coming from low income families. They have added funds for training people, who are child providers, to improve the quality skills based on child care.
Texas has few health programs that qualify to receive the government matching funds. State provides funds for the medical need programs to assist those with law, income and asset limits to meet their medical care. The medical policies also cover pregnant women and babies up to 185 % of poverty line in order to reduce infant mortality.
The recent Texas reform of providing financial support towards the teen pregnancy is seen as a positive effort for the federal government in support of youth services programs. The fund is allocated to reduce the rate at which teens are getting pregnant before the required age, moreover, it assists in a good progress of state monitoring to avoid overpopulation. Child support programs enable parents applying for welfare, assigning their children support rights in order to enforce child support and rights to state and cooperation.
The state provides funds for support of employment and training programs, such as Texas Workforce and Economic competitiveness Act, which have different levels. This includes certificate of Local Workforce Development Boards. The governor designates Local Workforce Development Areas and approves local Local Workforce Development Areas’ strategic and operating plans for service delivery.
Progressive taxation is that type of taxation that can be rationalized. For example, the state provides under the section 1 of the constitution that taxation shall be done equally in the relevant proportion of value, income tax, exception of certain tangible personal property from ad valorem taxation.
A progressive type of taxation is a type of taxation that keeps on improving gradually, depending with the type of government, e.g. initially the government was not taxing the rich class as it does today. In a new administration the government has concentrated in taxing the rich more as compared to the middle class.
Regressive taxation is a type of taxation that the government tries to adopt the old way of collecting taxed if the new form is not working, it levies on the state properties.
In conclusion, Texas state laws on taxation and revenue are the main guiders for public spending. The social welfare programs assist the production of the state national growth. The constitutional restriction protects the misappropriation of state funds.