Taxing and Spending

Question 1

national debt

Answer 1

The total amount the federal government owes its creditors

Question 2

budget deficit

Answer 2

The situation in which federal gov expenditures aqre greater than federal gov tax revenues
- great depression
- reducing unemployment
- national debt
- higher future taxes

Question 3

budget surpslus

Answer 3

The situation in which federal gov expenditures are less than federal gov tax revenues

Question 4

How does the gov spend money

Answer 4

National Defense
Income Security
Social Security
Medicare
Net Interest on the National Debt

Question 5

When does a gov spend on programs

Answer 5

when benefits outweigh costs

Question 6

Budget process

Answer 6

Begins with the president
Disagreements and compromises
Public Opinion Counts
The Budget Becomes law

Question 7

What is fair share

Answer 7

Benefits-recieved principle
—-A concept of tax fairness that states that people should pay taxes in proportion to the benefits they receive from government goods and services.
Ability to pay principle
—-The ability-to-pay principle holds that people with more income should pay more taxes.