Chapter 14

Question 0

Progressive tax

Answer 0

taxes that increase with the increase of the taxable amount.

ex. income tax

Question 1

Flat tax

Answer 1

tax payers pay taxes at the same percentage rate

ex. sales tax

Question 2

why some economists believe that we should be concerned about the national debt

Answer 2

Government borrowing may crowd out private borrowers from the loan market

Question 3

interest groups

Answer 3

lobbying for a group’s needs takes place in the agencies

Question 4

the agencies

Answer 4

heads of agencies almost push for higher budget requests

Question 5

the office of management and the budget (OMB)

Answer 5

responsible to the president-make budget decisions

Question 6

the president

Answer 6

makes final decisions on what to propose to Congress

Question 7

the tax committees in Congress

Answer 7

write tax codes. Subject to the approval of Congress

Question 8

the budget committees and the congressional budget office

Answer 8

set parameters of the congressional budget process

Question 9

subject-matter committees

Answer 9

write new laws, which require new expenditures

Question 10

appropriations committee and their subcommittees

Answer 10

decides who gets what

Question 11

Congress as a whole

Answer 11

approves taxes and appropriations

Question 12

the government accountability office (GAO)

Answer 12

works as Congress’s eyes and ears- monitoring what agencies are doing with their budgets

Question 13

Incrementalism

Answer 13

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

Question 14

Entitlements

Answer 14

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

Question 15

Sequestrations

Answer 15

across the board spending cuts

Question 16

incrementalism

Answer 16

belief in change by gradualism

Question 17

entitlements

Answer 17

having a right to something/ guarantee of access to something like benefits

Question 18

The military industrial complex

Answer 18

policy relationships between legislators, national armed forces, and the military industrial bas that supports them

Question 19

Social insurance taxes

Answer 19

pays for the retirement and disability benefits received by Americans. tax levied on employers and employees used to fund the Social Security program

Question 20

tax reduction

Answer 20

reduction in the gross amount on which a tax is calculated; reduces taxes by the percentage fixed for the taxpayer’s income

Question 21

tax reform

Answer 21

process of changing the way taxes are collected or managed by the government

Question 22

what federal expenditures make up the largest portion of the US budget

Answer 22

payments for individuals

Question 23

how do the expenditures of the US government compare to those of other modern government

Answer 23

America is smallest public sectors relative to the size of the economy

Question 24

when was social security created

Answer 24

law passed during the Great Depression (1930) that was intended to provide a minimal level of sustenance to older Americans and save them from poverty

Question 25

What has been added to the social security since 1930

Answer 25

1940- security checks 1950- disability insurance 1965- medicare 2003- tax on payrolls

Question 26

why is it so difficult to cut the US budget

Answer 26

want to get reelected- blamed for raising taxes