the income tax was unconstitutional
In Pollock v. farmer's loan and trust co. (1895), the U.S. Supreme Court ruled that
A(n) _____ is a policy document allocating taxes and expenditures, or a series of goals with price tags attached.
a policy statement that allocates burdens and benefits by attaching price tags to policy goals
The federal government's budget is mainly
translating financial resources into human purposes
According to Aaron Wildavsky, budgeting is a process most concerned with
establishing the annual tax rates that Americans of different incomes must pay
What is NOT a responsibility of the IRS?
individual income tax, social insurance receipts, borrowing, and corporate income tax
In order of decreasing amounts, the sources of federal revenue include
income taxes which account for much less federal revenue than individual income taxes
Corporations today pay
those with more income pay higher rates of tax on their income
The income tax is generally progressive, meaning that
consists of all the money borrowed over the years by the national government and still outstanding
The federal debt
has increased due to the budget deficit caused by the difference between revenues and expenditures
The federal debt in the US
its day to day expenses
Unlike state and local governments, the federal government is borrowing primarily for
_____ are revenue losses attributable to provisions of the federal tax laws which allow a special exemption, exclusion, or deduction.
The federal income tax deduction for mortgage interest on an owner-occupied home is an example of a
The Office of Management and Budget estimates that the total tax expenditures is more than _____ of the federal government's total receipts.
It provided new tax incentives for personal saving and investment.
What is true about President Reagan's 1981 tax cut?
It increased the number of tax expenditures available to businesses
What was not a provision of Reagan's 1985 tax simplification program?
Beginning in 1985, federal income taxes were _____ to the cost of living, so that government no longer got a larger percentage when inflation pushed incomes into higher brackets while the tax rates stayed the same.
raise the income tax rate for families in the highest income brackets
In 1993, Congress agreed to president Clinton's proposal to
Compared to most other countries with developed economies, the national, state, and local governments in the US tax
one of the smallest
Compared to other western nations, america's total government expenditure as a percentage of the GDP is
Which of the following countries have the smallest total tax revenues as a percentage of their gross domestic product?
America's national, state, and local governments spend an amount equal to _____ of the GDP.
the Department of Defense
During the 1950s and early 1960s, over half the federal budget was spent every year on
increase in social service expenditures and decline in defense spending
From the mid 1960s to the early 1980s, the biggest change in government spending was the
the close relationship between defense officials and the corporations that supply their hardware needs
The military industrial complex refers to
In 1965, _____ was added to the social Security programs to provide hospital and physician coverage to the elderly
provides small increases in the current budget over the previous year's budget
A major feature of incremental budgeting is that it
_____ refers to the concept that in the spending appropriations process, the best predictor of this year's budget is last year's budget plus a little bit more.
An agency or program must prove it still merits its very existence every year
What is not associated with incremental budgeting?
an expenditure that is required by current law or a previous government obligation to people automatically eligible for some benefit
An "uncontrollable" expenditure in the federal budget is defines as
Social Security programs, interest on the national debt, and military pensions are examples of
An estimated ____ of the federal budget is considered uncontrollable, unless Congress changes a law or existing benefit levels.
The ultimate power to determine how much the government will tax and spend, and what it will spend taxes for, lies with
Ways and Means
In the House, it is the _____ Committee that writes tax codes, subject to the approval of Congress as a whole.
they want the almost inevitable budget cuts to be bearable
Agencies invariably pad their budget requests because
In the Senate, the _____ Committee is responsible for writing tax codes, subject to the approval of Congress as a whole.
is a presidential appointee requiring approval of the Senate
The director of the Office of Management and Budget
Office of Management and Budget
The ____ is responsible for supervising preparation of the federal budget and advising the president on budgetary matters.
agencies of the executive branch sent their budget requests to the secretary of the treasury, who forwarded them on to Congress, with the president playing little or no role in the entire process
Until Congress passed the Budget and Accounting Act of 1921,
Before the president submits her budget to congress the OMB coordinates the requests of
General Accounting Office
Agencies' behavior and budgets are audited, monitored, and evaluated for Congress by the
The Office of Management and Budget parcels out money to government agencies and is accountable to the
The OMB is one of the few government agencies created by the Constitution (totally false)
What is false about the OMB?
the president makes revisions and submits it to Congress
Once the Office of Management and Budget has prepared the federal budget,
The Office of Management and budget
The Congressional budget and Impoundment control act of 1974 did not set up
Congress agree on a budget according to a fixed schedule, with target figures for the total budget size
The Congressional Budget and Impoundment Act of 1974 requires that
Congressional Budget Office
The congressional equivalent of the Office of Management and Budget is the
force Congress to consider the budget as a whole rather than in terms of individual appropriations
One of the important purposes of the Congressional Budget Act of 1974 is to
advise Congress on the consequences of its budget decisions
The main purpose of the Congressional Budget Office is to
To set a limit on total government spending, both houses of Congress are required to pass a(n) _____ every April, binding Congress to a total expenditure level, or bottom line, of all federal spending for all programs.