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


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


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


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)


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


Government social benefit program which helps the poor with medical expenses


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


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


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


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


Collects taxes from individual citizens and businesses


Reviews tax returns to ensure accuracy


Publishes paper and electronic tax forms


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


Largest office within the Executive Office of the President


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


Works with the president in formulation of federal budget


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


Helps negotiate budget cuts with heads of federal agencies


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


Assesses the nation's economic status


Predicts future economic conditions


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


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


Coordinates the budget work of Congress


Studies the budget proposals sent by the president


Projects the costs of the proposed budget


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


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


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


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


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


it is the central banking system of the US


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


Determine the general money and credit policies of the US


Raise or lower discount rates


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


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


regulates the trading of securities (stocks and bonds)


Aimed at preventing corporate abuse


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

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