Whether you are a first-time voter or have voted many times, understanding current fiscal and economic issues and the related measures that appear on your ballot can be daunting and complex. If you’ve ever wondered how your vote can impact fiscal and economic policy issues you’ve come to the right place!
By understanding exactly who and what you are voting for, you can make more informed choices that align with your personal values.
What is fiscal policy?
Put simply, fiscal policy is the use of a government’s spending and tax policies in order to reach their economic and social goals. The two main mechanisms of fiscal policy are spending and revenue (via taxes).
Why Does Fiscal Policy Matter?
Fiscal policy is how the government decides to capture revenue (i.e. taxes) and spend it. If you care about how much tax you pay or how the government spends that money, then you care about fiscal policy
The way fiscal policy is enacted varies by level of government. For example, state and local governments are not able to spend more than they have because they are required to keep a balanced budget. However, the federal government can borrow money whenever it is needed, but that also means Congress can create budget deficits — which contribute to the national debt
Economic Decision Makers At Different Levels Of Government
Let’s dive deeper into the people and types of initiatives to expect on your ballot that will impact the economic sustainability of your community.
Federal Government
Federal fiscal policy is directed by both the executive and legislative branches. In the executive branch, the two most influential offices for setting fiscal policy belong to the President and the Secretary of the Treasury, although many presidents rely on a council of economic advisers as well. In the legislative branch, the U.S. Congress passes laws and appropriates spending for any fiscal policy measures. Once Congress initiates and approves policy, it then goes to the President for their signature, enacting the policy into law.
Who you can expect to vote for on your ballot that impacts fiscal policy: President, United States Senator, United States Representative
State Government
State fiscal policy, like federal fiscal policy, is directed by both the executive and legislative branches. However, it is important to know that the structure and organization of state and local governments varies widely across the United States. While they do have some common features, it is necessary to research the government in your state to fully understand how it is organized and who are the elected officials that represent you.
Who you can expect to vote for on your ballot that impacts fiscal policy: Governor, State Treasurer/Controller/Comptroller, State Senator and State Representative/Assembly member
Local Government
Counties are usually the largest political subdivisions, and their primary function is to administer state laws within their borders. Among other duties, they collect taxes, keep the peace, maintain jails, build and repair roads and bridges and record deeds, marriages and deaths.
Who you can expect to vote for on your ballot that impacts fiscal policy: County Supervisor/Commissioner
Municipalities Also known as a city, town or borough, these units of local government are created to provide public services and get their authority to rule from the state. The most common structure of local government includes a mayor, city council and a city manager.
Who you can expect to vote for on your ballot that impacts fiscal policy: City Council member, Mayor
Townships These units of government only exist in about half the states, and they have different responsibilities in those that have them. A township may simply be another name for a town or city, or it may be a subdivision of a county.
Who you can expect to vote for on your ballot that impacts fiscal policy: Township board member
The Bottom Line: What can you do?
It may sound cliché, but the bottom line is your vote counts and has a huge impact on the leaders and policies that will directly impact your day-to-day life.
An informed voter is an empowered voter. It’s up to all of us to take control of our fiscal future by heading to the polls and voting for the changes, policies and people that align with our own values. Make a plan; set reminders for yourself at least a month ahead of elections to find your local ballot, research the people and policies that are up for a vote and encourage your friends and family to do the same!
To learn more about how these elected offices specifically impact fiscal policy and other ways your vote impacts fiscal policy, download the guide