Budgeting Flashcards
” who gets what, when, and how;”
This famous d finite on of politics was put forward by Harold Lasswell
Politics
Who gets what, when, and how - who said this
Harold Lasswell
Some observers concerned that _________ poses a danger to budgeting, because politicians seek to “buy” votes by spending funds on things voters like
Democracy
Politicians seek to “buy” votes by spending ____________ on things voters like
Public funds
A policy document allocating burdens and benefits
Budget
When expenditures exceed revenues
Budget deficit
A common name for Congress’s control over federal appropriations
The power of the purse
Congress has the ultimate power to determine how much the government will ____________
Tax and spend
What will be taxed and spent, and what it will spend taxes for, lies with
Congress
Provides small increasing in the current budget over the previous year’s budget; the most prevalent model of budgetary decision making in practice.
Incremental budgeting
In the House of Representatives, it is the _________________ that writes tax codes, subject to the approval of Congress as a whole
Ways and Means Committee
The _________________ and the senate Finance Committee write the tax codes
Ways and Means Committee
A government agency established to assist Congress in making budgeting decisions
Congressional Budget Office
Spending bills in Congress originate in the _____________ and their subcommittees
Appropriations Committees
An executive agency which prepares the president’ s recommended budget
Office of Management and Budget (OMB)
The heads of executive agencies send their budget request to ________
OMB
Who prepares a proposed federal budget, with the president making revisions?
OMB
The president’s proposed budget is then submitted to ________ for its consideration
Congress
Federal agency which audits, monitors, and evaluates the behavior and budgets of executive agencies for congress.
General Accounting office
Created a budget committee in each house of Congress; established a fixed budget calendar; and established the Congressional Budget Office
Congressional Budget and Impoundment Control Act of 1974
Congress passes this to set limits on expenditures based on revenue projections
Budget resolution
The congressional process through which program authorizations are revised to achieve saving
Budget reconciliation
passed by congress to establish, continue, or change a discretionary government program or an entitlement
Authorization bill
Passed by Congress to fund a program
Appropriations bill
Laws that allow agencies to spend at the previous year’s level
Continuing resolutions
When congress fails to meet its own budget timetable, it’s frequently resorts to __________
Continuing resolutions
Automatic across the board spending cuts
Sequestration
The idea that any new programs, or increased spending on existing programs, must be offset by either budget cuts or increased revenues.
Pay as you go
A tax on the manufacture, transportation, sale, or consumption of a good
Excise tax
In the early years of the nation, the _________ raised most of its revenue through fees collected on imported goods
Federal government
The Supreme Court ruled that the income tax was unconstitutional.
Pollock v. Farmer’s Loan and Trust Co. (1895)
Amendment to the U.S. Constitution permitted the federal income tax
Sixteenth Amendment
Name given to a tax, if everyone is taxed at the same rate
Flat tax
A tax system where those with with more taxable income not only pay more taxes but also higher rates of taxes.
Progressive tax
_________ of income tax revenue comes from taxpayers with the top 10 percent of taxable incomes
Two-thirds
The four major sources of federal revenue are….
Personal income taxes, corporate income taxes, borrowing and social insurances taxes
The fastest growing source of federal revenue has been __________
Social Security taxes
___________ are paid by both employers and employees
Social Security taxes
________ provide the largest source of federal revenue
Income taxes
Federal agency created in order to collect the federal income tax
International Revenue Service
All of the money borrowed by the federal government over the years that still needs to be paid back
Federal debt
The government borrows money principally by _________
Selling bonds
A majority of the national debt is currently held by __________
Foreign investors
The federal government gets most it’s revenue through ______
Taxes
A term, coined by president Dwight Eisenhower, referring to the link between the military and the defense industry
Military industrial complex
The purchasing of military hardware
Procurement
Spending on defense currently makes up _______ percent of all federal expenditures
20
As a federal program, social security began under ________
President Franklin Roosevelt
By 1990, the social security system was financed by a payroll of over _______ percent
15
In 1945, ______ workers supported the social security benefits for one retiree
50
Currently, _____ workers support the social security benefits for one retiree
3
The federal program designed to provide health care coverage for older Americans
Medicare
policies for which congress has obligated itself to pay for certain level of benefits based on a certain number of recipients: for example social Security payments
Entitlements
