Gov't spending & revenues
three of the largest categories of local government expenditures
1. elementary and secondary education utilities, hospitals, police protection, interest on debt, public welfare and highways.
"fiscal year"
A twelve month period that does not have to coincide with the calendar year
Tax incidence is concerned with tax loopholes.
FALSE
A tax levied on both employers and employees to pay for Social Security and Medicare is:
FICA
What is a budget that shows a positive balance after expenditures are subtracted from revenues called?
Federal Budget Surplus
What is the difference between Gross Income and Net Income as it is applied to the typical worker?
Gross income in the amount the worker earns, whereas, net income is the amount the worker receives.
accelerated depreciation
Larger than normal depreciation changes, which allowed firms to reduce federal income tax payments
All of the following are major categories of local government spending EXCEPT _______________.
Military budgets
All of the following are major categories of state government spending EXCEPT:
Public utilities
The belief that taxes should be paid based on benefits received, despite total income, is known as the benefit principle of taxation.
TRUE
A flat tax is a proportional tax.
TRUEE
The two largest sources of revenue for states are sales taxes and intergovernmental revenues.
TRUEE
federal budget deficit
The amount by which federal expenditure exceeds federal revenue.
Who creates the federal budget?
The president
Appropriations Bill
an act of Congress that allows federal agencies to spend money for specific purposes
Surcharge
an additional charge above and beyond the base rate
tax loopholes
exceptions or oversights in the tax law that allow some people and businesses to avoid paying taxes
intergovernmental revenue
funds collected by one level of government that are distributed to another level of government for expenditures
intergovernmental expenditures
funds that one level of government transfers to another level for spending
Which part of the federal budget pays for the government borrowing money?
interest on the national debt
largest category of State expenditures
intergovernmental expenditures
A state receives revenue from the federal government to help pay for expenditures on a highway. What is this type of revenue called
intergovernmental revenue
two revenue sources for local government
intergovernmental revenues and property tax
The alternative minimum tax
is an additional tax above and beyond the base rate.
discretionary spending
spending which requires government approval on an annual basis
A person who assigns value to property for tax purposes is called a
tax assessor
Adv of flat tax
they are relatively simple and they minimize tax loopholes
