American government chapter 13 & 16 Flashcards
A___________is a policy document allocation burdens(taxes) and benefits( expenditures). A_______-translantes financial resources into human purposes
budget
budject
A______occurs when expenditures exeed revenues in a given fiscal year. aover the last 25 years the government has run up large annual_________. Why is this?
Budjet deficit
decimal
because the goverment spend more that it recieves from tax revenues
The _________amendment to the Constitution permits the G to levy taxes. Today_______million tax returns are filled each year.
16th
143
The president and Congress are often caught in a budjetary squeeze. Why?
Americans want a balance budjet, low taxes, maintain government services
Income tax is________, meaning that those with more income pay higher rates of tax on their income. A ______flat tax is one where everyone pays the same rate
Progressive
Flat
A_______ are issued by the G when it wants to borrow moiney. It is the interest the G must repay on these bonds that utilizes 8% of the the G’s expendentures. Borrowing money shits the burden of repayment to future tax payers who will have to service the debt and pay principle . America also borrows from other governments and foreign investors to fund its debt.
Bond
Every dollar borrowed today by the G will cost taxpayers many more dollars in __________interest over the next 30 years. Most G borrowing is for _________and not capital expenses.
It should noted that American families live ithe same way-financing day to day expenses with credit cards and mortgages
Operation
Day to day
The G also uses taxes to equalize incomes among citizens, encourage or discourage growth in the economy; and to promote specific interests. What are some ways it does this?
Tax credits, tax collection, tax exemption
In 1932 the G was spending ______ per year. Today the G spends more than this amount in one day.
3 billion dollars
The defense budget has historically been more than half of the federal budget but now is _____of the budget._____________have more than doubled
1/5
Social welfare expendituress
The social security act passed by FDR extends direct and indirect aid to the elderly, needy, sick and disabled(through medicare) and the poor.__ million Americans recieve payments each month under this act. the typical retired worker recieved________ per months in 2002
50
1,229
Under the SSA, money is taken from the working members of society and spent on the retired members. In 1945, SS was financed with a __ tax on payroll. Now its up to __. In 1945 ________ workers paid into the system for each beneficiary, now only_____workerspay for each beneficiary. The baby boom combined with increased life expentancy has added a lot of people to the SS rolls. Soon the number of workers for each beneficiary will be 2 which means the amount of SS tax for each worker will go up
3%
15%
50
3
_____________is the largest social policy of the G accounting for 1/3 of the federal budjet. Liberals typically favor social programs while conservatives see them as a drain on the budget
Social security & Medicare
___________is the share of the national income earned by various groups of people. ______is the amount of funds collected between any 2 points of time.______-is the value of assets
Income distribution
Income
Wealth
Explain the dilemma of the social security system.
1- people are living longer. 2- babyboomers are retiring.3- aging population. 4 fewer contributions , more beneficiaries.
