Chapter 25 Flashcards
(42 cards)
budget
a blueprint of how the government will raise and spend money
a blueprint of how the government will raise and spend money
budget
fiscal year (FY)
a 12-month period that may or may not match the calendar year. The federal government’s budget year begins October 1 and ends of September 30 of the following year.
(The budget that begins of Oct. 1, 2005, is the fiscal year 2006 budget because 9/12 months fall in that year)
a 12-month period that may or may not match the calendar year. The federal government’s budget year begins October 1 and ends of September 30 of the following year.
(The budget that begins of Oct. 1, 2005, is the fiscal year 2006 budget because 9/12 months fall in that year)
fiscal year (FY)
budget resolution
a document that totals revenues and spending for the year and sets targets for how much will be spent in various categories
(spending is divided into two types: mandatory and discretionary spending)
a document that totals revenues and spending for the year and sets targets for how much will be spent in various categories
(spending is divided into two types: mandatory and discretionary spending)
budget resolution
mandatory spending
spending that does not need annual approval
(examples: Social Security benefit checks and interest payments on the government debt, which must be paid every year)
spending that does not need annual approval
(examples: Social Security benefit checks and interest payments on the government debt, which must be paid every year)
mandatory spending
discretionary spending
government expenditures that must be approved each year
(Examples: money for the Coast Guard, agriculture, space exploration, highway construction, and defense.)
-This type of spending makes up only about 1/3 of the federal budget.
government expenditures that must be approved each year
(Examples: money for the Coast Guard, agriculture, space exploration, highway construction, and defense.)
-This type of spending makes up only about 1/3 of the federal budget.
discretionary spending
appropriations bill
a law that approves spending for a particular activity
a law that approves spending for a particular activity
appropriations bill
tax return
an annual report to the government that calculates the tax a worker must pay on his or her income
an annual report to the government that calculates the tax a worker must pay on his or her income
tax return
payroll tax
taxes deducted from a worker’s paycheck to fund Social Security and Medicare
taxes deducted from a worker’s paycheck to fund Social Security and Medicare
payroll taxes
Social Security
a government program that provides money to people who are retired or disabled
a government program that provides money to people who are retired or disabled
Social Security
Medicare
pays some health care costs of elderly people
pays some health care costs of elderly people
Medicare
intergovernmental revenue
money that one level of government receives from another level
money that one level of government receives from another level
intergovernmental revenue
sales tax
a general tax levied on consumer purchases of nearly all products
a general tax levied on consumer purchases of nearly all products
sales tax
