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22 terms

Chapter 14

STUDY
PLAY
Budget
A policy document allocating taxes and benefits expenditures
Deficit
An excess of federal expenditures over federal revenues
Expenditures
Federal spending of revenues. Major areas of such spending are social services and the military.
Revenues
financial resources of the federal government. Individual income tax and Social Security tax are two major sources of revenue.
Income Tax
Shares of individual wages and corporate revenues collected by the government. 16th amendment alows congress to levy a tax on income.
16th Amendment
The Constitutional amendment adopted in 1913 that explicity permitted congress to levy an income tax.
Federal Debt
All money borrowed by the federal government over the years and still outstanding.
Tax Expenditures
Revenue losses that result from special exemptions, exclusions, or deductions on federal tax law.
Social Security Act
1935 law passed during the Great Depression that was intended to provide a minimal level of sustenance to older americans and thus ave them from poverty.
Medicare
Program added to the Social Security system in 1965 that provides hospiltalization insurance for the elderly and permits older americans to purchase inexpensive coverage for doctor fees and health expenses.
Incrementalism
Belief that the best predictor of this years budget, is last years budget plus a little more.
Uncontrollable Expenditures
Expenditures that are determined not by a fixed amount of money appropriated by congress but by how many eligible beneficiaries there are for a program or by previous obligations of the government.
Entitlements
Policies for which congress has obligated itself to pay X Level of benefits to Y Numbers of rexipients.
House ways and means committee
House of Representatives committee that, along with the Senate Finiance Committee, writes the tax codes, subject to the approval of Congress as a whole.
Senate Finance Committee
The Senate committee that, along with the House ways and means, writes the tax codes, subject to the approval of Congress as a whole.
Congressional Budget and Impoundment Control Act of 1974
An act designed to reform the congressional budgetary process. Its supporters hoped that it would also make congress less dependent on the presidents budgets and better able to set and meet its own budgetary goals.
Congressional Budget Office
Advises Congress on the probable consequences of its decisions, forecasts revenues, and is a counterweight to the presdients OMB.
Budget Resolution
Resolution binding congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.
Reconcilliation
Congressional process through which program authorizations are revised to achieve required savings.
Authorization bill
Act of congress that establishes, continues, or changes a discretionary govt program or an entitlement. Specifies program goals, and maxium expenditures for discretionary programs.
appropiations bill.
act of congress that actually funds programs within limits established by authorization bills.
continuing resolutions
when congress cant reach agreement and pass appropriations bills, these resolutions allow agencies to spend at the level of the previous year.