chapter 13 Flashcards
revenue
the financial resources of the government. the individual income tax and social security tax are two major sources of the federal; government’s revenue.
expenditures
government spending. major areas of federal spending are social services and national defense
deficit
when the government spends more money than it collects
entitlements
policies for which Congress has obliged itself to pay X levels for benefits of Y number of recipients. social security benefits are an example.
surplus
when the government collects more money than it spends
16th amendment/income tax
shares of individual wages and corporate revenues collected by the government. the 16th Amendment explicitly authorizes Congress to levy a tax on income
social security
a federal insurance program that provides benefits to retired people and those who are unemployed or disabled.
reconciliation
a congressional process through which program authorizations are revised to achieve required savings. it usually also includes tax or other revenue adjustments
medicare
a program added to the Social Security system in 1965 that provides health insurance for the elderly, covering hospitalization, doctor fees, and other expenses.
mandatory expenditures
spending dictated by laws and includes spending for entitlement programs like Social Security and Medicare.
discretionary expenditures
spending determined by the President and Congress each year in the budget and appropriations process and includes spending for most defense, education, and transportation programs.
appropriations bill
an act of Congress that actually funds programs within limits established by authorization bills. appropriations cover one year
