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
