Civics Today Chapter 25: Government Finances

Front 1

Automatic Stabilizers ex:

Back 1

-unemployment insurance programs
-wellfare programs ex: medicaid
-The fact that fed income tax is progressive as another stabilizer

Front 2

Balance Budget

Back 2

When spending = revenue

Front 3

bond

Back 3

contract to repay the borrowed money with interest at a specified time in the future

Front 4

Gov borrows money by :

Back 4

selling bonds

Front 5

Deficit

Back 5

When gov spends more the it collects in revenue

Front 6

Surplus

Back 6

When gov spends less than it collects in revenue

Front 7

State gov. Expenditures :

Back 7

Public Wellfare , colleges and universities , High Way and construction improvement,
also funds public edu , retirement , hospitals and health , and corrections

Front 8

Local gov. Expenditures :

Back 8

Education, fire and police , water supply , sewer and sanitation , trash collection , libraries and rec.

Front 9

Subsidize

Back 9

Pay part of costs

Front 10

Entitlement programs

Back 10

Programs providing health , nutritional , or income payments to people meeting established eligibility requirements

Front 11

State gov. Revenue

Back 11

Most imp: Intergovernmental revenues
Second: Sales tax
Lastly: State Income tax

Front 12

Intergovernmental revenues

Back 12

Money that one level of gov receives from another. Most of this comes from federal govs.

Front 13

Sales tax

Back 13

general tax levied on consumer purchases of nearly all products.

Front 14

Local Gov. revenue

Back 14

1. intergovernmental revenue
2.property tax
3.revenue from water and electricity utility services
4. Fines paid for traffic and other violations

Front 15

Special Assessments

Back 15

Fees that property owners must pay for local services that benefit them

Front 16

real property ex:

Back 16

Land , buildings

Front 17

Income security includes :

Back 17

retirement plans for people who worked in gov or served in military, also to railroad workers and disabled miners

Front 18

Regressive Tax

Back 18

-Opposite of progressive tax
-Percentage you pay goes down as your income increases

Front 19

Progressive Tax

Back 19

-Opposite of Regressive Tax
-Percent you pay increases as ur income increases

Front 20

Proportional Tax

Back 20

-Takes the same percentage of income from everyone regardless of how much he/she earns.

Front 21

Forms of taxation
Classifications include:

Back 21

Proportional , progressive , and regressive taxes

Front 22

Estate tax

Back 22

Wealthy people die the fed gov collects a tax on the wealth they left to their heir

Front 23

Excise tax

Back 23

you pay this on things like gasoline , tobacco , alchol , legal bettings , etc. Discourages bad habits

Front 24

Sources of fed income/revenue:

Back 24

1.Income tax
2.Payroll tax
3.Corporate profits tax
4.other

Front 25

Tax Return

Back 25

Annual report to the gov that calculates that tax a worker must pay on his/her income

Front 26

Payroll tax

Back 26

Taxes deducted from from a workers paycheck to fund social security and medicare

Front 27

Social Security

Back 27

gov. program that provides $ to people who are retired or disabled

Front 28

Medicare

Back 28

Pays some healthcare costs of elderly people

Front 29

Two Parts of Federal Budget:

Back 29

1. Revenue
2. Expenditures

Front 30

Appropriations Bill

Back 30

-Must be passed b4 any money can be spent in congress
-A law that approves spending for a particular activity

Front 31

Before congress can spend any money it needs to pass an :

Back 31

Appropriations Bill

Front 32

Spending is divided into BLANK and BLANK spending

Back 32

Discretionary Spending and Mandatory Spending

Front 33

Discretionary Spending

Back 33

-Gov. Expenditures that must be approved each yr
-1/3 of budget
-ex: money for coastguard , agriculture , space exploration , highway construction and defense

Front 34

Mandatory Spending

Back 34

-Spending that does not need annual approval
-Ex: social Security, etc.

Front 35

Budget

Back 35

Blueprint for how gov will raise and spend $

Front 36

Who creates the budget

Back 36

Congress and the president

Front 37

Fiscal Year

Back 37

12 month planning period that may not coincide with the calendar yr

Front 38

Budget Resolution

Back 38

This doc totals revenue and spending for the year and sets targets for how much will be spent in different categories