Chapter 16
Tax withheld from employee's paycheck
Payroll Tax or Income Tax
In the first step of the budgeting process, each federal agency prepares a detailed estimate of its spending needs for the coming year and submits to __________
The Office of Management & Budget
What is deficit?
The amount of expenditures exceeding income in a given year
What is public debt?
The total outstanding indebtedness of the Federal Government
Interest on the public debt is an example of _______ spending
Uncontrollable
What is a fiscal policy?
Various means it uses to raise and spend money and thereby influence the nation's economy
What is the US population?
320 million
There is no ________ limit on the amount that may be borrowed. and so there is no __________ limit on public debt.
Constitutional Constitutional
When Congress has failed to pass all of its appropriations before the end of a fiscal year, it must pass a _________, which allows the Federal Government to continue to function
Continuing Resolution
Highway spending and defense spending are ___________
Controllable
Tax on goods brought into the U.S.
Customs Duty
Benefits to those meeting eligibility requirements are _______ programs
Entitlements
Tax on luxury goods
Excise Tax
Tax on gift by a living person
Gift Tax
What is the largest source of income for the government?
Individual Income Tax
A charge for borrowing money
Interest
Why is government fiscal policy important
It affects the economy
What's the difference between mandatory and discretionary expenditures?
Mandatory HAVE to be paid by law and discretionary are optional
What is the largest government expenditure?
Medicare/Medicaid
__________ must authorize any and all federal borrowing
Congress
What did George HW Bush say about Supply Side Economics?
That it was "Voodoo Economics"
What did Oliver Wendell Holmes say about taxes?
"Taxes are what we pay for a civilized society"
What is the current debt?
$18.2 Trillion
What was the income for 2014 fiscal year?
$3 Trillion
What was the amount of expenses for 2014
$3.5 Trillion
What is the current deficit?
$426 Billion
What is a fiscal year?
A year of operation
When was Tax Freedom Day?
April 24
Which institution is responsible for appropriating all of the money spent by the Federal Government?
Congress
The _______ is the result of the Federal Government's borrowing over time.
Public debt
Tax collected at a flat rate
Regressive Tax
Each , Congress passes two concurrent resolutions concerning the budget: one in May, which __________________, and one in September, which ___________________
Sets overall targets for federal spending in the coming year, sets binding spending limits for all federal agencies
The government is able to _______ money at ______ rates of interest than those paid by private borrowers.
borrow lower
