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represents the nation’s policy priorities
o Moral document – vales colliding with facts
o Normative meeting empirical |
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a policy of reducing regulatory restraints in the conduct of individuals or private institutions
Reduction in the number of rules promulgated by regulatory agencies |
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| money that flows into the government’s coffers, the income the government receives through taxes and bonds |
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| What the government spends money on |
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o Net – interest we owe to investors
o Public – debt the government borrows from itself
o Budget, both on-line and off-line |
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Term
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Definition
o Deficit is when the yearly expenditures exceeds the yearly revenue
o Surplus is when the yearly revenue exceeds the yearly expenditures |
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| consequences for deficit and surplus with different governmental actions |
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Definition
o When there is a deficit, the government often tries to either cut back spending or increase revenue
o When there is a surplus, the government often spends more money on programs or pays down the debt (rare) |
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| a number of expenditures, which include mandatory programs such as the Medicare and Social Security programs, military spending, and discretionary funding. |
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federal spending that is made up of “uncontrollable”
Expenditures that are relatively uncontrollable such as interest payments on the national debt |
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Term
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fed spending on programs that are controlled through the regular budget process
Money available in the budget to use for various programs or to counteract fluctuations in the business cycle |
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Term
| uncontrollable expenditures |
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budgetary items that are beyond the control of budgetary committees and can be controlled only by substantive legislative action in Congress. Some uncontrollable, such as the interest on the debt, are beyond the power of Congress because the terms of payments are set in contract
Social Security, Unemployment assistance, Medicare, subsidies that must happen every year – as of 2009 make up 64.8% of the budget |
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budget has relative stability; it doesn’t change in massive leaps. Exception of 1996 welfare reform. Tends to change slowly.
Budget increase incrementally every year in various different agencies |
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not included in the real budget; known amount hidden. Specifically intended for covert and secret operations
Funding for secret military programs |
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Term
| 3 types of taxes and an example of each |
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Definition
1. Progressive: taxation that hits the upper income brackets more heavily (income tax)
2. Regressive: taxation that hits the lower income brackets more heavily (sales tax; lottery; SS)
3. Proportional: flat rate applied to all income brackets (flat taxes)
o Regressive
♣ Income increases, and taxes decrease
♣ Social security taxes, sales tax
o Proportional
♣ Flat rate for all people
o Progressive
♣ Federal income tax
♣ Income increases, tax rates increase |
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Term
| alternative forms of taxation/revenue |
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Definition
o Sin tax – alcohol, cigarettes etc
o User fees – tolls, speeding, car rentals, airport tax, hotel tax, lotteries etc |
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Definition
the government’s policies regarding taxing and spending
Government’s taxing and spending powers |
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Definition
efforts to regulate the economy through manipulation of the money supply. Fed Reserve System (reserve requirement, discount rate, and open-market operations)
Manipulate the growth of the entire economy by controlling the availability of money to banks |
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