unit 6: PUBLIC FINANCE Flashcards
How many main ideas are there IN UNIT 6?
In my opinion, there are 4 main ideas:
1, Firstly, it talks about federal budget
2, Secondly, it mentions 2 kinds of funds from taxation:
- Federal funds
- Trust funds
3, Thirdly, it talks about borrowing
4, Finally, it talks about federal debt.
What is FEDERAL BUDGET?
- the federal budget comes from different kinds of taxes.
- There are 3 main sources:
+Income taxes,
+payroll taxes,
+and corporate income taxes.
What are two types of funds from taxations in America?
(=American government’s revenue from taxation can be divided into 2 types. What are they?)
They are:
- FEDERAL FUNDS
- and TRUST FUNDS
what are federal funds?
Federal funds are general revenues that fund the government in general.
what can trust funds be used?
(=What are the purposes of trust funds?)
It can be used only to pay for very specific programs such as Social Security and Medicare
what does the U.S. Treasury do when revenue from taxes is not enough to cover all of the government’ s expenditures?
the Treasury borrows money by issuing bonds.
What is debt held by the public?
is the total amount the government owes to all of its creditors in the general public.
What is debt held by federal account?
It is the amount of money that the Treasury has borrowed from ITSELF.
What is the federal debt?
the federal debt is the sum of the debt held by the public plus the debt held by federal account
summarize unit 6: public finance.
I will summarize Unit 6. Unit 6 is about Public Finance. In my opinion, there are 4 main ideas:
**1. Firstly, it talks about FEDERAL BUDGET:*
- The federal budget comes from different kinds of taxes.
- 3 main sources: income taxes, payroll taxes, and corporate income.
**2. Secondly, it mentions 2 KINDS OF FUNDS FROM TAXATION*:
- FEDERAL FUNDS: are general revenues that fund the governments in general.
- TRUST FUNDS: can be used only to pay for very specific programs such as Social Security and Medicare
**3. Thirdly, it talks about BORROWING:*
- the Treasury borrows money to make up the difference.
- the Treasury borrows money by issuing bonds
- the treasury must pay back the money it has borrowed and pay interest
**4. Finally, it talks about FEDERAL DEBT:* the federal debt is the sum of the debt held by the public plus the debt held by federal account:
- DEBT HELD BY THE PUBLIC: is the total amount the government owes to all of its creditors in the general public.
- DEBT HELD BY FEDERAL ACCOUNT: is the amount of money that the Treasury has borrowed from itself.
(Nguồn tham khảo: tài liệu do Giảng viên Phạm Thị Thu cung cấp)
Where do federal funds mainly come from?
(=Which sources do federal funds mainly come from?)
They come from 2 major sources:
- income taxes
- and corporate taxes.
Where do trust funds mainly come from?
They come from payroll taxes.
what type of taxes contributes the largest proportion of tax revenues?
individual income
Who does the Federal Government owe money to?
a government owes money to:
- its citizens,
- foreigners,
- other government
- or international financial institutions.
how can public finance be raised?
It can be raised from tax, borrowing money, Investing and so on.
What is the difference between a federal fund and a trust fund?
What are Customs duties?
Customs duties are taxes imposed on imports and exports of goods.
What are Excise taxes?
They are taxes levied on specific goods, like cigarettes.
