How can we help?

You can also find more resources in our Help Center.

26 terms

Budget

STUDY
PLAY
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