Taxation and Government

Overview:
	Issues surrounding taxation and public spending represent some of the most fundamental questions about the rationale for government and the justification for economic and social policy. Economic theory recognizes that some goods and services ("public goods") will not be adequately provided by the private marketplace (national security, public infrastructure, police and fire, protection of the environment), and that this represents a central justification for government to provide these goods and services: because they would otherwise be unavailable. Another way economists frame the debate is by pointing to "market failures" where markets and private entrepreneurship do not result in competitive markets, efficiency, or other desired outcomes (e.g., monopolies and collusion, costly or asymmetric information, economies of scale or scope, equity, fairness). An argument can be made that these represent situations where government might intervene to correct these market failures. Government interventions, however, typically have their own limitations, inefficiencies, and vulnerabilities to abuse, which may result in corruption, waste and failed outcomes.      Key questions surrounding public finance include: a) what should be the level of government spending; b) what types of goods and services should be provided by government; c) how to avoid waste and promote efficient use of public funds; and d) what kind of tax system will be the most stable, most efficient, and fairest. Underlying these questions are many philosophical and ideological concepts such as rights, freedoms, social contracts, collective responsibility, egalitarianism, and quality of life in civil society.
Frequently Asked Questions (FAQs)
	Do lower taxes attract jobs (for example, at the state level)?
	Can lowering taxes actually generate more revenue by stimulating economic growth?
	Seven Frequently Asked Questions about Taxes and Spending in Oregon[pdf]
Other Resources and Internet Links:
	Tax Policy Center of the Urban Institute and Brookings Institution
	Rockefeller Institute of Government
	National Bureau of Economic Research
	Urban Institute
	Citizens for Oregon's Future
	Oregon Center for Public Policy
Publications, Presentations and Working Papers