XIII - The Budget

Question 1

Federal budget

Answer 1

Where the gov’t gets the money and what it decides to spend the money on

Question 2

Implied & enumerated powers

Answer 2

Allows Congress to pass a federal budget

Question 3

Revenuse

Answer 3

Source of money

Question 4

Expenditures

Answer 4

How money will be spent

Question 5

Surplus

Answer 5

More revenues than expenditures

Question 6

Deficit

Answer 6

More expenditures than revenues

Question 7

Most revenue raised by fed gov’t is through

Answer 7

Taxes

Question 8

Sixteenth Amendment

Answer 8

Allowed Congress to establish an income tax

Question 9

Federal income tax is

Answer 9

progressive- higher incomes are taxed at higher rate

Question 10

Flat tax

Answer 10

Everyone pays the same tax rate

Question 11

Cooporate taxes

Answer 11

While the % corporations are suppose to pay may be high, oftentimes many find ways to avoid paying

Question 12

Social Insurance taxes

Answer 12

Social Security and Medicare taxes are withheld from an employee’s paycheck

Question 13

The gov’t borrows money when

Answer 13

Tax revenue does not reach the amount needed to cover federal expenditures

Question 14

The gov’t borrows money by

Answer 14

Selling bonds

Borrowing money from itself

Question 15

National debt

Answer 15

Money borrowed by the fed. gov’t and interest owed

Question 16

Debt ceiling

Answer 16

Established by Congress

Limit on how much money the gov’t can borrow

Question 17

Tax revenue decreases

Answer 17

During an economic downturn

Question 18

Spending will often increase when

Answer 18

revenue declines

Question 19

Tax expenditures

Answer 19

Tax revenue that is lost as a result of exemptions

Question 20

Tax cuts

Answer 20

popular with voters

Causes increases in deficit

Question 21

Tax exemptions includes

Answer 21

Charitable contributions
Interest on mortgage
Business deductions

Question 22

Fed. gov’t spending

Answer 22

Steadily increased since the 1930’s

Question 23

Size of fed. gov’t

Answer 23

Increased as voters look to gov’t to do more things

Question 24

Defense spending

Answer 24

Substantially increased throughout 20th century

Question 25

Entitlements

Answer 25

Dramatic increase in social programs during New Deal & Great Society

Question 26

Problems with entitlement

Answer 26

More beneficiaries than workers | Costs of these programs can't be easily cut

Question 27

Incremental increases

Answer 27

Appears in most federal budgets each year

Question 28

Federal spending is

Answer 28

uncontrollable

Question 29

Automatic federal spending includes

Answer 29

Interest on debt | Federal entitlements

Question 30

Discretionary spending

Answer 30

Spending

Question 31

Mandatory spending

Answer 31

Spending

Question 32

As entitlement costs grow, discretionary spending opportunitites will

Answer 32

Decrease unless tax revenues increase or budget deficit increases

Question 33

President submits a

Answer 33

Budget to Congress for approval

Question 34

Office of Management & Budget h

Answer 34

Helps the President prepare the budget

Question 35

Budget committees

Answer 35

In the House & Senate helps to develop their own budget proposals

Question 36

Budget resolution

Answer 36

Compromise budget agreed upon by both chambers

Question 37

Budget reconcilliation

Answer 37

Involves changing any laws to make the numbers work

Question 38

Authorization bills

Answer 38

Establish or change gov't programs

Question 39

Appropriations bills

Answer 39

Fund programs

Question 40

During the budgeting process, variouys groups

Answer 40

tries to influence it

Question 41

Gov't shutdowns

Answer 41

Results when deadline of budget approaches but the budget has not been decided upon

Question 42

Continuing resolutions

Answer 42

Laws passed by Congress that allow agencies to spend at last year's levels

Question 43

Politics of scarcity

Answer 43

There are not enough funds to meet all the demands placed on the gov't

Question 44

Public policy is pulled in two directions

Answer 44

Want low taxes | Want various services

Question 45

Increase in size & scope of federal gov't led to

Answer 45

increases in federal spending