Chapter 16

In developing the budget, the President's budget plan is referred to the

Budget Committee in each house of Congress for study

Sometimes the Federal Government's power to levy taxes for nonrevenue purposes is denied by the Supreme Court because

Congress is trying to raise more money than necessary

In recent decades, the Federal Government borrowed money mostly to

Operate the government and pay previous years' debt

Although congress ca appropriate the money that the Federal Government uses to operate, it is the ___ who initiates the spending process

President

The most important aspect of the federal budge is the impact is has on

Public Policy

Two of the largest categories of federal spending are

Social Security and interest on the public debt

Tax Return

a declaration of that income and of the exemptions and deductions he or she claims

continuing resolution

a measure which allows agencies to continue working based on the previous years appropriations

A person with a low income from an importing business, who receives large gifts of money from friends and has no wealthy relatives, would prefer

a progressive income tax, low custom duties, high estate taxes, and low gift taxes

Payroll tax

amounts owed by employees are withheld from their paychecks

controllable spending

an amount decided upon congress and the president to determine how much will be spent

entitlement

benefits that federal law says must be paid to all those who meet the eligibility requirements, such as being a certain age

To combat a crisis situation in the past, Congress was allowed to

borrow money for the Federal Government

interest

charge for borrowed money

The federal government can levy taxes on all of the following groups EXCEPT

churches

One reason for the importance of the federal budget is that it

determines which public programs will have money to operate

The process of preparing the federal budget begins with

estimates from all agencies detailing yearly spending projections

Taxes on the production, transportation, sale or consumption of goods are___taxes

excise

The Federal Government is able to borrow money at lower interest rates than private borrowers because

greater dependence on regressive taxes than on progressive taxes

Progressive Tax

he higher the ones income, the higher the tax

The largest source of federal revenue from taxes comes from

income taxes

public debt

is the governments total outstanding indebtedness

The Federal Government's practice of spending more thaan it takes in results in

it borrows over long periods of time

Estate Tax

levy imposed on the assets of one who dies

The power to borrow money, historically, was seen as a way for the US to

meet the costs of both long and short term crisis situations

Today, more than one in every five dollars spent by the Federal Government pays for

money allocated for military equiptment

surplus

more income than outgo in any year from 1969-1998

Canal tolls and fees for passports and patents are categorized as

nontax revenues

Gift Tax

on the making of a gift by a living person

Excise Tax

on the manufacture, sale, or consumption of goods

Both corporate and individual income taxes are set at ___ rates

progressive

A gift tax must be paid if a person

receives gifts valuing more than $10,000 in any one year

Which of the following is NOT a source of nontax money in the United States?

revenues collected as custom duties

Which of the following limits on the Federal Government's power to tax is implied but but not stated in the constitution

states shall not be taxed for their government activities

The federal government can

tax an activity that Congress believes is harmful or dangerous to the public

Customs Duty

taxes laid on goods brought into the USA from abroad

Regressive Tax

taxes levied at a flat rate

deficit

the yearly shortfall between income and outgo

Public debt today is measured in ___ of dollars

trillions