chapter 13: Budget Flashcards
42% of people filing income tax returns in 2009 paid no income tax at all. Which tax is responsible?
Progressive tax
Which is an example of intragovernmental debt?
Borrowing insurance tax revenue from social security
Which of the following is a tax expenditure given to students?
American Opportunity Credit
Which of the following accounts for the longest social policy cost of the federal government?
Social security
Which of the following is an example of an excise tax?
Tax levied on the consumption of goods
Which of the following is the role of the Government Accountability Office (GAO)?
To monitor what agencies do with their budget
Which of the following relationships is an example of how democracy can distort budgeting?
Politicians spend public funds to win votes
Which one of the presidents listed below had low budget deficits during his presidency?
Bill Clinton
In which of the following years were prescription drugs benefits added to Medicare?
2003
Which of the following is the biggest threat to social security?
Retirement of the baby boomers
Which of the following is an example of capital gain?
Stock and real estate profits
Federal benefits that must be funded by Congress and must be paid to all citizens who meet eligibility criteria are called
Individual entitlements
The largest portion of “uncontrollable spending” in the federal budget is designated for which of the following?
Entitlement spending
______ threatens the intergenerational contract for Social Security
Increased life expectancy
Which of the following does the federal government do when it is unable to cover its expenditures?
Sell bonds
To which of the following congressional committees would a proposal to reform the national income tax system initially be sent?
House Ways and Means Committee
A balanced budget occurs when the ______ and the supply equals zero.
Deficit
A(n) ______ is an act of Congress that funds programs established by authorization bills
Appropriations bill
What is the purpose of continuing resolutions?
They allow agencies to spend at the level of the previous year
The ______ amendment permits Congress to levy income taxes
16th
Which of the following budgetary process actors does the president oversee?
OMB: Office of Management and Budget
The constitution states that all revenue bills must originate in
The United States HORs
Which of the following illustrates American citizens’ usual attitude toward the budget?
American want to decrease taxes, increase spending, and balance the budget
By law, the president must submit a budget by the first Monday in ______. (month)
February
A(n) ______ is an act of Congress that binds Congress to a total expenditure level for all programs in a given year
Budget resolution
The national debt is ______ of yearly deficit over time
Accumulation
According to the OMB, what is the most costly expenditure?
Mandatory domestic policy programs
Who benefits most from the military-industrial complex?
Defense contractors
A(n) ______ is an act of Congress that establishes or changes a government program
Authorization bill
THe deficit is calculated by subtracting total revenue from total ______.
Expenditures
Political scientists use the term ______ to describe the budget process.
Incrementalism
An example of a discretionary item in the federal budget is
Spending on national parks
Who pays income taxes?
Corporations and individuals
Which is the largest social policy of the federal government?
Social Security
In which of the following years was Medicare included in the Social Security System?
1965
Why did the U.S. keep a large permanent military after World War 2?
The Cold War began at the end of World War II
Which of the following is the role of the Congressional Budget Office?
To advise Congress on consequences of its budget decisions
