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37 Cards in this Set
- Front
- Back
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What is a Budget?
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A plan for raising and spending money. (created by president and congress)
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What are Revenues?
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Governments income
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What are expenditures?
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items that the government plans to spend money on and the amound expected.
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What is a fiscal year?
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From October 1 to September 30- (not a calendar year)
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Explain how a budget begins?
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Budget begins in the office of Management and Budget(OMB) President sends budget to congress for approval. Congress then passes a budget resolution. The budget resolution is divided into 2 spending types.
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What are the two types of spending that takes place in government?
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Mandatory Spending: does not need anual approval
Discretionary Spending: must be approved by congress each year. |
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What does congress split Discretionary Spending into?
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13 Appropriations Bills
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What is an Appropriations Bill?
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a law that approves spending for a particular activity.
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What is an Income Tax?
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Tax on income (16th am.)- Personal and Corporate
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What are the 4 guildlines to taxation created by Adam Smith?
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1.Based on Person's ability to pay.
2.Clear and Straightforward 3. Collected in most convient way. 4. Collected Efficiantly |
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What is Progressive Tax?
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Earn more, pay more
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Proportional Tax?
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same percentage of each person's income is taken.
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Regressive Tax?
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everyone pays the same amount.
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What is the amound remaining after all taxables deductions to your income?
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Taxable Income
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What are some examples of Tax deductions?
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marriage, children, Medical/Charitable expenses.
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What do employers do to workers paycheck?
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subtract a certain portion of paycheck. So taxpayers only owe a "small" amount at the end of the year.
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Why are more Federal and State income taxes progressive?
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Because lower income families spend a larger percentage of their earnings on necessities. The wealthier can share a larger share of the tax burgen.
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What are property taxes based on? It is the largest source for what?
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PT based on value of property. It is the largest source of revenues for local gov. and school districts.
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What is an Assessor? How is Property Tax related to its worth?
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examine propery and decide how much its worth. Property Tax is the percent of the assessed amount.
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Sales Tax is a what type of tax?
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Regressive
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What is an general sales tax?
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collected on nearly everything
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Excise Tax?
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Collected on specific products.. cigarettes/alcohol
(sin tax) |
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In many states medical supplies and groceries are_________
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not taxable b/c they are necessities
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Estate/Inheiritance Tax?
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taxes paid on inheirited property and money.
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Payroll Tax?
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collected by Fed. gov. from workes paycheck to pay for Social Security and Medicare.
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Tariff?
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import tax created to protect American industries.
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Grant-in-Aid?
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sum of money give for a specific purpose(highways
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Block Grant?
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combination of specific grants-in-aid. Ex.- transporatation.
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What are the largest expeditures of the Fed. Governement?
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Social Security(21%)
National Defense(17.4%) Medicare(13.5%) |
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Why are Social Security expenses expected to grow?
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the number of older people is growing.
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What is the 2nd highest expiditure of State Government?
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Education- higher education (colleges/universities)
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What is the highest expiditure of local governments?
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Elementary and Secondary education
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Deficit?
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When gov. spend more money than they bring in?
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Surplus?
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when gov. spends less than it collects.
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National Debt?
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total amount the governmet oWes on money it's borrowed.
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How does the government try to cut the deficit?
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by "balance the budget"- budget where expenditures do not exceed the Revenues
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Most states require a what?
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a balanced budget or they must cut services.
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