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Essay / Research Paper Abstract
This 3-page paper focuses on government and private funding, explaining example such as Tax Incremental Financing and the Community Reinvestment Act. Bibliography lists 3 sources.
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3 pages (~225 words per page)
File: D0_MTgovtfina.rtf
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Unformatted sample text from the term paper:
whereas the other is through private finance. Public finance, in its most basic form, is the collection of taxes from those
who benefit from provision of public goods (or services) from the government (Public Finance, 2009). Once the taxes are collected, they are then used to fund both production and distribution
of the goods in question (Public Finance, 2009). An example of government, or public, financing is Tax Increment Financing, also known
as TIF. In a TIF, a state distributes various sales and tax collections to municipalities that have shown a growth in retail sales or gas/electricity consumption (Tax Increment Financing, 2009).
Those funds go into TIF districts and are pro-rated to each municipality, based on its share of the overall TIF net state increment (Tax Increment Financing, 2009). TIFs many times
are set up to fund various projects, such as buildings or park development. TIFs also mean that taxes paid to a certain municipality for a certain item will be diverted
to the fund, to help grow the fund so the municipality can help develop a project that will benefit the community. Governments
can also finance through the sale of bonds or debt. City bonds sold to various individuals or investors can help the government obtain more liquidity to invest in projects. Developing
road infrastructure, for example, can be done through funds raised by the sale of bonds. But bond issues generally go before voters before they can be then sold to other
investors. Private finance is, as the name suggests, financing that comes from the private sector, such as banks or other individuals.
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