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