Module 5 Flashcards

1
Q

There is no process outlined in the constitution for creating a budget or plan for the government?

A

True

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2
Q

Enumerated powers

A

Granted to congress as outlined in article 1 section 8 of constitution

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3
Q

Implied powers

A

Powers authorized by the constitution that, while not stated, seem implied by powers that are expressly stated.

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4
Q

In the constitution, the presidents only role in the funding process is signing and vetoing funding bills?

A

True

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5
Q

Federal Fiscal year

A

October 1

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6
Q

Most states fiscal year starts

A

July 1, fits into school year

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7
Q

Describe the budgeting process

A

1) The president works with cabinet officers to create a budget proposal, submitting to congress by February.
2) Congress divides the budget into 12 parts. Committees make recommendations to congress by April, finished before October.
3) if congress doesn’t finish, or president vetoes, there is a) continuing resolution b) government shutdown

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8
Q

The Constitution requires the budget to balance?

A

False

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9
Q

Sequestration

A

Sets limits on some spending and requires across the board cuts if congress cannot agree

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10
Q

Paygo

A

Pay as you go. New programs must be paid for as you go. From Budget Enforcement Act you f 1990

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11
Q

Types of government spending

A

1) mandatory spending
2) interest on national debt
3) discretionary spending

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12
Q

Mandatory spending

A

Already set by law

Social security, Medicare, federal retirement

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13
Q

What are some examples of clearly enumerated powers in the constitution?

A
  • Establish post office and roads
  • fund Supreme Court and lesser federal courts
  • fund army, navy, state militias
  • coin money
  • protect intellectual property
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14
Q

What are some examples of flakey enumerated powers??

A
  • regulate commerce
  • regulate tue value of money
  • deal with pirates
  • “necessary and proper” for all the powers, provide for the general welfare
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15
Q

US is a __________ system. Many countries are ___________.

A

Federal

Unitary

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16
Q

Article 1 section 8

A

The congress shall have the power to lay and collect taxes, duties, imposts, and excises but all shall be uniform throughout the United States.

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17
Q

Article 1 section 9

A

No capitation or other direct tax shall be laid unless in proportion to the census or enumeration herein before directed to be taken

No tax or duty shall be laid on articles exported from any state

18
Q

16th amendment

A

The congress shall have the power to lay and collect taxes in incomes from whatever source derived without apportionment among the several states and without regard to any census or enumeration

19
Q

Article 1 section 10

A

No state shall without the consent of congress lay any imposts or duties on imports or exports except what may be absolutely necessary for executing its inspection laws.

No state shall without the consent of congress lay any duty on tonnage

20
Q

Earmarked tax

A

Tax tied to a specific function

Ex. Gas tax is earmarked for roads

21
Q

Tax incidence

A

Refers to who actually pays for a tax

22
Q

Shifting

A

Person or business who pays the government gets the money from someone else who pays the true cost

23
Q

Excises

A

An excise tax is placed on a good or service.

Can be a general tax like the sales tax, or a specific tax like the gasoline tax

24
Q

Value added tax (VAT)

A

Tax included in the price of the good.

25
Imposts/Duties
Tariffs - taxes on imports
26
Nexus
Connection. Historically businesses only collected taxes from customers in states where they had a physical presence, employees, etc.
27
McCulloch vs Maryland (1819)
In our federal system One level cannot tax the other level. Ex. State of Nevada cannot tax the government
28
Income effect
An increase in price is effectively a decrease in your income
29
Substitution effect
When the price of a good rises, we substitute other, cheaper, goods when possible
30
An increase in sales tax would lead to a shift in __________
Supply
31
Elastic Demand
When consumers are sensitive to price
32
When demand is __________, businesses find it hard to raise the price and so will eat the tax
Elastic
33
Inelastic Demand
When consumers are insensitive to price
34
When demand is _________, the business can pass the tax on to the consumer.
Inelastic
35
Progressive tax
Takes a larger percentage of income as income rises Ex. Income tax
36
Proportional tax
Takes the same percentage of income regardless of income Ex. Corporate profit tax
37
Regressive tax
Takes a lower percentage of income as income rises Ex. Sales taxes, property taxes taxes, social security taxes
38
States fiscal year
July 1 (coincides with school year)
39
Federal System
Multiple levels of government
40
Unitary System
1 level of government
41
“Fiscal Year” means
Budget year