Chapter 14

Front 1

Budget

Back 1

A Policy document allowing taxes and expenditures

Front 2

Deficit

Back 2

More money spent than gained (normally in a year)

Front 3

Expenditures

Back 3

Government spending of money

Front 4

Revenues

Back 4

The financial resources of the government (ie: Income tax)

Front 5

Income tax

Back 5

Tax on personal and corporate income - 16th amendment allowed it

Front 6

Sixteenth Amendment

Back 6

Allowed government to have income tax

Front 7

Federal Debt

Back 7

The amount of money the Federal Government owes (includes outstanding debt)

Front 8

Tax Expenditures

Back 8

Revenue loss from exemptions, exclusion, deductions on Federal tax law. AKA: Tax deduction

Front 9

Social Security Act

Back 9

1935 - Was to provide a minimum amount of money to save retired people from poverty

Front 10

Medicare

Back 10

Added to Social Security in 1965 which provided hospitalization insurance and less expensive health care coverage for elderly.

Front 11

Incrementalism

Back 11

Where the best predictor of the budget is the last year's budget

Front 12

Uncontrollable Expenditures

Back 12

Expenditures that are determined not by a fixed amount but by how many people are eligible for the programs (ie: Social Security)

Front 13

Entitlements

Back 13

Policies which the government is obligated to pay X amount of benefits to Y number of people (Social Security)

Front 14

House Ways and Means

Back 14

Writes tax codes; subject to approval of whole congress. Works with Senate Finance Committee.

Front 15

Senate Finance Committee

Back 15

Writes tax codes; subject to approval of whole congress. Works with House Ways and Means.

Front 16

Congressional Budget and Impoundment control Act of 1974

Back 16

An act designed to reform the congressional budgetary process by making the congress less dependent on the president's budget.

Front 17

Congressional Budget Office

Back 17

Advises Congress on the the consequences of their decisions, economic forecasts, etc.
Counterpart to President's OMB.

Front 18

Budget Resolution

Back 18

The resolution theoretically binding congress to a total expenditure level for all federal programs

Front 19

Reconciliation

Back 19

The congressional process through which programs are alter in order to achieve monetary balance

Front 20

Authorization bill

Back 20

An act of congress that creates, continues, or changes, a discretionary program or enittlement. Specifies goals and spending limits for programs

Front 21

Continuing Resolutions

Back 21

When congress cannot make an agreement, and the government spends that same way as the last year.