Chapter 14 - AP Gov.

Which of the following statement is true about president Reagan's 1981 tax cut

It provided new tax incentives for personal saving and investment

In order of decreasing amounts, the sources of federal revenue include

Individual income tax, social insurance receipts, borrowing and corporate income tax.

An estimate _____ of the federal budget is considered uncontrollable, unless congress changes a law or existing benefit levels

two-thirds

Budget items mandated by law or by a previous obligation are known as

uncontrollable expenditures

In the senate, the ___ Committee is responsible for writing tax codes, subject to the approval of congress as a whole

finance

An example of incremental budgeting is

giving an agency a little more than it had last year

The Federal debt in the US

has increased due to the budget deficit caused by the difference between revenues and expenditures.

The biggest slice of federal budget pie belongs to

income security expenditures

The biggest expenditure in the federal budget today is

income security programs

Corporations today pay

income taxes which account for much less federal revenue than individual income taxes

From the mid-1960's to the early 1980's the biggest change in government spending was the

increase in social service expenditures

Director of the Office of Management and Budget

is a presidential appointee requiring approval of the Senate.

Compared to most other countries with developed economies, the national, state, and local governments in the United States tax

less

Tax expenditures tend to most benefit

middle- and upper-income people and corporations.

By 1990, the Social Security system was financed by a payroll tax of

over 15 percent

Social Security Act

paid for by employees and employers

The purchasing of military hardware is known as

procurement

In 1993, congress agreed to President Clinton's proposal to

raise the income tax rate for families in the highest income brackets

The government borrows money principally by

selling bonds

The fastest growing source of federal revenue has been

social security taxes

tax expenditures consists of

tax exceptions, deductions, and exclusions

the federal income tax deduction for mortgage interest on an owner-occupied home is an example of a

tax expenditure

The social security act, which set up the social security system, was passed in

1935

The office of management and Budget estimates that the total tax expenditures is more than

30 percent of the federal governments total receipts

What is not the responsibility of the Internal Revenue service?

Establishing the annual tax rates that Americans of different incomes must pay

The heads of executive agencies send their budget requests to the

Office of Management and Budget

Income taxes

Provide the largest source of federal revenue

Once the Office of Management and Budget has prepared the federal budget,

The president makes revisions and submits it to congress

Which of the following countries have the smallest total tax revenues as a percentage of their gross domestic product

United States

In the house of representatives, it is the ____ committee that writes tax codes, subject to

Ways and Means

Who can purchase United States government bonds?

all of the above

social insurance taxes

are earmarked for a specific purpose.

The ultimate power to determine how much the government will tax and spend, and what it will spend taxes for, lies with

congress