Taxes and Spending

Created by leagon14 

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audit

when the IRS checks tax returns more closely to be sure they are accurate

budget

a plan of income and outcome

customs duties

taxes levied on goods imported into the US; also known as tariffs

deficit spending

when the government spends money it does not have

dependent

a person who relies on someone else for support . A taxpayer may claim an exemption for a dependent if certain conditions are met

direct benefit payment

government spending programs including Social Security , social welfare programs , and health care programs

discretionary spending

all other forms of government spending that does not include direct benefit payments, interest on the national debt, or national defense

excise taxes

Taxes on the sale or use of specific products or transactions

exemptions

Amount that taxpayers can claim for themselves, their spouses , and eligible dependents

federal debt

the amount of money the government owes at any one given time

Federal Reserve System

also known as the Fed, it is the central banking system of the US (banker's bank)

General Accounting Office

It is the government agency that reviews the financial management of government programs that Congress creates, collects government debts, settles claims, and provides legal service

Grants in Aid

Sums of money given to the states by the federal government for a variety of specific purposes

Gross National Product

the sum of all goods and services produced in a nation in a year

Income tax

Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest and dividends)

Incrementalism

the term used to explain that the total budget changes little from year to year

Internal Revenue Service

Government agency which manages the payment of taxes

Medicaid

Government social benefit program which helps the poor with medical expenses

Medicare

Government social benefit programs which helps the elderly with medical expenses

Office of Management and Budget

prepares the national budget that the president proposes to Congress each year

progressive tax

a tax that takes a larger percentage of income from high income groups than from low income groups

protective tariff

a tax on imported goods designed to make domestic industry more competitive

regressive tax

a tax that takes a larger percentage of income from lower income groups than from high income groups

securities

financial instruments, including bonds, notes, and certificates, that are sold as a means of borrowing money with a promise to repay the buyer with interest after a specific time period

social insurance taxes

the money collected by the federal government to pay for major social programs, such as social security, medicare, and unemployment compensation programs

social security

money contributed by employers and employees which will later serve as a retirement for the wage owner

tax

the money that people and businesses pay to support the activities of the government

tax credits

amounts that can be deducted directly from taxes owed. These amount result in a dollar to dollar reduction in taxes owed

tax loopholes

an exploitation of a tax law which can reduce or eliminate the tax liabilites of the filer.

taxable income

the total income of an individual minus certain deductions and exemptions

total income

the sum of every source of taxable income that you have regardless of where it came from, and before any deduction, exemptions, or adjustments are applied. Any income you can think of!

uncontrollable expenditures

government expenditure required by law or resulting from previous budgetary commitements

withholding

the money an employer withholds from workers' wages as payment of anticipated income tax

IRS

Collects taxes from individual citizens and businesses

IRS

Reviews tax returns to ensure accuracy

IRS

Publishes paper and electronic tax forms

IRS

The forerunner of this agency was created by President Abe Lincoln after implementation of the nation's first income tax during the Civil War

OMB

Largest office within the Executive Office of the President

OMB

Helps set funding priorities which coincide with the president's agenda

OMB

Works with the president in formulation of federal budget

OMB

Receives spending plans from all federal agencies and reviews them with the president and his Council of Economic Advisors

OMB

Helps negotiate budget cuts with heads of federal agencies

OMB

Submits final budget to president for final review and approval. This is sent to Congress for official approval

CEA

Assesses the nation's economic status

CEA

Predicts future economic conditions

CEA

Helps propose solutions to specific economic problems, such as unemployment and inflation

CEA

prepares an annual report that the president gives to Congress on the state of the economy

CBO

Coordinates the budget work of Congress

CBO

Studies the budget proposals sent by the president

CBO

Projects the costs of the proposed budget

GAO

It is the audit, evaluative, and investigative arm of Congress

GAO

It serves as a 'watchdog' over how funds that Congress appropriates are spend

GAO

Reviews financial management of all government programs that Congress creates, collects government debt, settles claims, and provides legal services.

GAO

Issues an audit report of the financial statement of the US Governement called the Financial Report of the US Government

GAO

Publishes a Federal Fiscal Outlook Report as a way to advocate for financial sustainability and to reduce the federal

Fed

it is the central banking system of the US

Fed

It is where banks borrow money from (banker's bank)

Fed

Determine the general money and credit policies of the US

Fed

Raise or lower discount rates

Fed

Raise or lower the serve requirement for member banks (the minimum amount of money that must be kept in their vaults)

Fed

Puts money into the economy by buying government bonds on the open market

SEC

regulates the trading of securities (stocks and bonds)

SEC

Aimed at preventing corporate abuse

SEC

Is in charge of enforcing seven major laws that govern the securities indusry

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