How to Measure the Size of Governments?

I. The Number of Government Workers Hard to define the government workers sometimes.  When we rely more on, less on labor force, it would the importance of government.

Although for many purposes the number of public sector employees is useful information, it does not cast the light on the central issue – the extent to which society resources are subject to control by government. I. The Number of Government Workers

II. Government Units For Census Bureau statistical purposes, a “government” is defined as an organized entity subject to public accountability, whose officials are popularly elected or are appointed by public officials, and which has sufficient discretion in the management of its affairs to distinguish it as separate from the administrative structure of any other government unit. Source: ent%20units%20in% ent%20units%20in%202002

II. Government Units The Census Bureau recognizes the following basic types of governments:  Federal government  State government  Local government  Counties  Municipalities  Townships  School districts  Special districts

U.S. Government Units : 1957 to 2007 Year Numbers Total102,39291,23681,29978,26979,91381,83183,23786,74387,50487,90089,527 Federal government State governments 4850 Local governments 102,34391,18581,24878,21879,86281,78083,18686,69287,45387,84989,476 General purpose: County3,0503,0433,0493,0443,0423,0413,0423,043 3,034 3,033 Subcounty34,41535,14135,15335,50835,68435,81035,89135,96236,00135,937 36,011 Municipal17,21717,99718,04818,51718,86219,07619,20019,29619,37219,431 19,492 Township17,19817,14417,10516,99116,82216,73416,69116,66616,62916,506 16,519 Special purpose: School district50,45434,67821,78215,78115,17414,85114,72114,55613,72613,522 13,051 Special district14,42418,32321,26423,88525,96228,07829,53233,13134,68335,3563,033 Source: U.S. Census Bureau,

II. Government Units Remarks: There were government units in the United States as of June 30, From 1957 to 2007, the number of government units in the US first, and then later. This change mainly comes from “ ”. The level government, the change of the number of units.

III. The Amount of Public Expenditure The total spending of all branches of government and of other agencies in the public sector, including three basic types: – 所謂公共支出（ public/government expenditure ） 是指政府 提供各項財貨與勞務過程中，耗用社會資源所需要支付的 費用。

III. The Amount of Public Expenditure The Facts of Government Expenditure 1. The Trend  Nominal and real term  Per capita  Percentage of GDP 2. The Change of Its Composition – Before v.s. Now 3. By Jurisdiction 4. International Comparison 5. Taiwan’s Case

Government Expenditure in the US, (Federal + State and Local Governments) Year Nominal ,8802,9063,9165,489 Real8141,2131,7712,6013,2753,9164,757 Note: Real Gov’t Expenditure is inflation-adjusted to the year of Source: Economic Report of the President 2013,

Year Dollars4,2395,9147,77810,39611,59813,23115,136 Note: Real Gov’t Expenditure is inflation-adjusted to the year of Source: Economic Report of the President 2013,

Year %  In recent years, the government spending of GDP has remained roughly constant, about 35.0%.

Source: Economic Report of the President 2013, Us Federal Budget – Receipts & Expenditure (Billions)

Although total government spending has increased substantially as a percentage of GDP since the 1950s, the growth in the various components of spending has not been even, thus, the of spending has changed significantly during the same period. The Composition of Government Spending

Composition of Federal Expenditure: 1965 v.s Source: Rosen and Gayer, Public Finance, 9 th edition, Figure 1.2, page 11.

Remarks: National defense was the largest share of government spending, but its relative importance has fallen over time. Social Security now is the largest spending item. Medicare and Health spending did not even exist in 1965; it now absorbs above 13.1% of federal expenditure. Spending on Income Security also increased. Payments of interest on debt have remained roughly constant as a proportion of federal expenditure since They now account for about 8.4 percent of federal expenditures.

Composition of State and Local Expenditures: 1965 v.s Source: Rosen and Gayer, Public Finance, 9 th edition Figure 1.3, page 11. Increase in, decline in highways, others relatively remain the same.

Spending by all levels of government increased as a percentage of GDP, but federal government spending grew more rapidly than local government spending. is concentrated on national defense, international affairs, agriculture, social and income security. is concentrated on education, civilian safety and transportation. Government Spending by Jurisdiction

Source: Neil Bruce, 2 nd edition, Figure 1.4, page 11.

U.S. All Level Governments Expenditures (selected years) Source: Refer to Rosen and Gayer, Public Finance, 9 th edition 9 th edition, Table 1.1, page 9.

Government Spending / GDP – Selected Countries Government Spending as a Percentage of GDP, 2014 資料來源：

Government Revenue We will discuss this topic in great detail next semester.  Just a quick look. Government obtains the funds from three ways:  However, most of the current receipts of the government are obtained from.

US Federal, State, and Local Government Tax Revenues by Source, 2011 FederalStateLocal Individual Income Tax Corporate Income Tax Social Insurance / Retirement Sales and Gross receipts General Sales Tax Selective Sales / Excise Tax Property Tax Others ( Unit: %) Source: Tax Policy Center ( ) Remark: The federal government relies heavily on individual income taxes, whereas state and local governments rely more heavily on sales and property taxes, respectively.

Composition of Federal Taxes (1965 and 2012) Social insurance and individual income tax have become more important. Corporate and other taxes have become less important. Source: Tax Policy Center, )

Composition of State and Local Taxes (1965 v.s. 2011) Individual tax becomes more important; however, property tax gets less important. Source: Source: United States Census Bureau,

Taiwan’s Case Please check the following report: “Government Finance in the Republic of China 2014”  中華民國財政 2014, 財政部綜合規劃司 This publication describes the major work of the Ministry of Finance in the areas of the national treasury, taxation, customs, and national property. It is published with Chinese and English text. The book includes detailed information and figures to give our readers a comprehensive overview of work performed on our national finances. (

各級政府財政歲入歲出淨額 28

各級政府財政歲入淨額結構 29

30 民國 102 年各級政府歲入淨額，仍以 、 營業盈餘及事業收入為主要來源，其中稅課收入所 占比重呈現上升趨勢，由 93 年之 70.2 ％上升至 102 年之 ％。

各級政府財政歲出淨額結構 31

32 民國 102 年各級政府歲出淨額，以 ____________ 、 _____________ 及 _____________ 所占比重較大，分 別占 22.5 ％、 20.1 ％及 14.8 ％；自 93 年以來，以社 會福利支出及教育科學文化支出比重各增加 4.6 與 1.6 個百分點較多，而經濟發展支出及債務支出比 重各減少 3.6 和 1.4 個百分點。 資料來源：中華民國財政 2014 －國庫業務

各級政府債務餘額 33

2011 年各國負債概況 國家政府公共債務 ( 美金 ) 占 GDP 比率 美國 15.2 兆 100% 英國 2.1 兆 83% 日本 14.1 兆 229% 中國 1.2 兆 17% 台灣 0.18 兆 39% 資料來源： conomy

中央政府社會安全支出結構 35

Tax System in Taiwan 36

37

38 In total, there are taxes in Taiwan, with national taxes and local government taxes. Among all taxes, taxes are classified as direct taxes.

89 會計年度以前：  國稅 ( 中央 ) 和地方稅 ( 省和直轄市 / 縣市 ) 89 會計年度以後：  國稅 ( 中央 ) 和地方稅 ( 直轄市 / 縣市 ) 89 會計年度以後將原本屬於省稅之 _____________ 納入國稅。 39

89 會計年度： 90 會計年度： 91 會計年度以前： 91 會計年度以後： 40

Ex ：各級政府財政歲入歲出淨額

賦稅收入成長概況 42

賦稅收入結構 43

44 民國 102 年賦稅收入以 ________ 占 40.5 ％最大，較 93 年增加 7.6 個百分點，其次為 _________ 占 16.5 ％ ，較 93 年減少 0.3 個百分點，貨物稅占 8.9 ％，較 93 年減少 2.6 個百分點，關稅所占比重亦逐漸降低， 顯示賦稅結構已有顯著變化。

主要賦稅收入成長趨勢 45

46 單位 : 新台幣拾億元

47

48 The tax structure has changed in recent years. 102 年景氣回溫，稅收增加，與 101 年相較其中土地 稅增加 21% ，營業稅增加 7.5% ，關稅增加 2.2% ，貨 物稅增加 1% ；惟所得稅因 101 年企業獲利不佳之遞 延影響，減少 2.3% 。 資料來源：中華民國財政 2014 －賦稅收入

直接稅與間接稅比重 49

50 In the past ten years, due to government efforts in improving the tax structure and in strengthening the collection of income tax each year, revenue from direct taxes as a percentage of total tax revenues has risen. In CY 2013, total revenues from ______taxes rose to 59.5%, an increase of 3.7 percentage points compared with CY 2004.

賦稅收入之相對百分比 51

平均每人稅負及平均每人所得 52

選樣國家租稅負擔比較 53