Budget

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Budget

policy documents. it also says what government pays for and is revenue vs. expense

surplus

revenue exceeds expense

deficit

expense exceeds revenue

the three types of revenue

1. income tax & corporate tax: goes in social fund like social security.
2. social insurance tax: which is used for specific purpose.
3. Borrowing / issuing debt . treasury bonds, bills, and notes. the interest adds to the debt

progressive tax

the more you make the higher percent of your income you will pay

flat tax

same percent of your income no matter what. all pay the same percent.

regressive tax

the more you make the smaller percent of your income you pay like social security and sales tax

borrowing

issuing debt, interest, balanced budget amendment

tax does what

1. revenue for government
2.influence activities like student loans.

tax expenditure

money that government could collect but does not because they are exempted from taxation.

government influence

is bad and good

flat tax

will never happen because 1. special interest would fight it and 2. government cant influence activities.

two types of expenditures

1. social services state- social welfare
2. national security use to be number one. more than 60 percent of budget

a budget method- incrementalism:

last years budget plus little bit more. it is not good because there is more federal spending, its uncontrollable

social welfare

provides assistance and support to specific groups. over 80 percent to to non poor and 17 percent goes to poor

entitlement program

social security or medicare

means tested

is based on need. A.F.D.C or medicaid

income

amount of money collected between two points in time

wealth

amount already owned, car, stock, accts

poverty line

U.S census made it. it is the minimum amount to make for needs to be eligible for programs

government involvement in social welfare

linden Johnson: war on poverty in the 60's
Reagan tried to reduce social welfare in 80's

3 legged stool

1.social security- an entitlement is most expensive
2.pension
3.savings- is personal responsibility

to increase social security from running out

increase revenue or reduce expenses

privatization chart

most industrialized country spend more
is a way to reduce expenses

cradle to the grave coverage

is a way to reduce expenses

largest difference between liberals and conservative

social welfare

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