Taxing and Spending Flashcards
1
Q
national debt
A
The total amount the federal government owes its creditors
2
Q
budget deficit
A
The situation in which federal gov expenditures aqre greater than federal gov tax revenues
- great depression
- reducing unemployment
- national debt
- higher future taxes
3
Q
budget surpslus
A
The situation in which federal gov expenditures are less than federal gov tax revenues
4
Q
How does the gov spend money
A
National Defense
Income Security
Social Security
Medicare
Net Interest on the National Debt
5
Q
When does a gov spend on programs
A
when benefits outweigh costs
6
Q
Budget process
A
Begins with the president
Disagreements and compromises
Public Opinion Counts
The Budget Becomes law
7
Q
What is fair share
A
Benefits-recieved principle
Ability to pay principle
