Revenue Streams For Public Organizations – Coursework Example
Revenue Streams for Public Organizations The Changes to Implement It is apparent that public establishments normally face budgetary shortfalls that affect their revenue streams and funding of public services. As a result, it is essential to initiate strategies that shall help in maintaining the flow of revenues in the public organizations. The first change to make to obtain revenues would be to make changes to both the individual and corporate tax rates (Cropf, 2008). For instance, increasing the income tax of workers who earn high salaries to fund projects helps in generating revenues. This implies that I would increase the user fees for those who earn high wages to sustain the economy. It is also significant to change the acquisition of property tax by charging those who gain financial allowances from the properties. This is because they gain benefits from the tenants by charging high rates, which the governments should tax to fund public programs (Cropf, 2008).
A flat tax might not be an appropriate way to generate revenue because it penalizes the low-income sector of the economy. This arises since they are forced to pay an equal amount with the earn-income earners who do not feel the pinch in their budgets (Cropf, 2008). The low-income segment has to spend money on similar necessities wanted by higher-income earner, which reduces their income savings.
A national sales tax would be a sensible method to raise revenue because everyone would be required to remit his or her fair share. This indicates that a country collects taxes, according to the overall sales made without relying on the individual seller’s efforts. As a result, it is a sensible method to raise revenue based on the overall productivity of an economy (Cropf, 2008).
Cropf, R. (2008). American public administration: public service for the 21st century (1st ed.)
New York, NY: Pearson Longman.