Econ Vocab

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budget

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a policy document allocating burdens and benefits

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deficit

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an excess of federal expenditures over federal revenues

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expenditures

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federal spending of revenues. Major areas of such spending are social services and the military

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revenues

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the financial resources of the federal government. The individual income tax and social security tax are two major sources of revenue

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income tax

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shares of individual wages and corporate revenues collected by the goven't

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16th amendment

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permitted congress to levy an income tax

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federal debt

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all the money borrowed by the federal government over the years and still outstanding.

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tax expenditures

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revenue losses that result from special exemptions, exclusions, or deductions on federal tax law

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Social Security act

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1935 law passed during the great depression that was intended to provide a minimal level of sustenance to older Americans and thus save them from poverty

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Medicare

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a program added to the social security system in 1965 that provides hospitalization insurance for the elderly and permits older Americans to purchase inexpensive coverage for doctor fees and other health expenses

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incrementalism

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the belief that the best predictor of this year's budget is last year's budget, plus a little bit more.

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uncontrollable expenditures

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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

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entitlements

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policies for which Congress has obligated itself to pay X level of benefits to Y number o recipients.

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house ways & means committee

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house of committee that along with the senate finance committee writes the tax codes, subject to the approval of congress as a whole.

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senate finance committee

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along with the house ways and means committee writes the tax codes subjected to the approval of congress as a whole.

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congressional budget & impoundment control act of 1974

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an act designed to reform the congressional budgetary process. its supporters hoped that it would also make congress less dependent on the president's budget and better able to set and meet its own budgetary goals

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congressional budget office (CBO)

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advises congress on the probable consequences of its own decisions, forecasts revenues, and is counterweight to the president's OMB

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budget resolution

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a resolution binding congress to total expenditure level, supposedly the bottom line of all federal spending for all programs.

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reconciliation

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a congressional process through which program authorizations are revised to achieve required savings. it usually also include tax or other revenue adjustments

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authorization bill

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An act of Congress that establishes, continues, or changes a discretionary government program or an entitlement. It specifies program goals and maximum expenditures for discretionary programs. Compare appropriations bill.

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appropriations bill

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An act of Congress that actually funds programs within limits established by authorization bills. Appropriations usually cover one year.

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reconciliation

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A congressional process through which program authorizations are revised to achieve required savings. It usually also includes tax or other revenue adjustments.

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continuing resolutions

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When Congress cannot reach agreement and pass appropriations bills, these resolutions allow agencies to spend at the level of the previous year.