The Rest of the Notes Flashcards
_________ is a national health insurance program for citizens over 65 and certain other groups of people.
Medicare
Employers and employees each pay _______ of employee income.
1.45%
_________ is a program funded by federal and state taxes and administered by the states.
Unemployment compensation
__________ provides benefits for a certain period of time to employees who lose their jobs through no fault of their own.
Unemployment
_________ applies to the first $7,000 earned by an employee.
Unemployment tax
An individual can collect unemployment benefits for a maximum of _______.
26 weeks
Congress passed the ___________ to extend that duration to 72 weeks.
emergency benefits program
________ is the third largest source of tax revenue for the federal government.
Corporate income taxes
Tax breaks for corporations include:
deduction for investment in buildings, equipment, research, and rules that benefit multinational corporations.
_______ are taxed at the corporate level and again at the individual level, since shareholders pay taxes on the income they receive in the form of dividends and capital gains.
profits
______ is a tax on property that is transferred to others on the death of the owner.
estate tax
________ is a tax on money or property given by one living person to another.
gift tax
The maximum amount of a gift you receive cannot be more that _______ per year, per individual.
$14,000
_________ is a tax on the production or sale of a specific product, such as gasoline or telephone service.
excise tax
The government places excise taxes on goods or services for which there is relatively inelastic demand in order to maintain a steady stream of _________.
revenue
________ is a tax on goods imported into the United States from another country.
customs duty
Customs duties are basically excise taxes on imports and are known as ________.
tariffs
_______ is money charged for the use of a good or service.
user fee
The federal government charges entrances, parking, and camping fees to visitors to __________.
national parks
The program and services the federal government funds with tax revenue are divided into two categories:
__________ & __________
- mandatory spending
- discretionary spending
_________ makes up well over half of all federal spending.
mandatory spending
Most of this spending is in the form of ________, which are social welfare programs with specific requirements.
entitlements
_______ means certain conditions have been met to receive the benefit.
“means tested”
The ________ program takes the largest amount of federal spending.
social security
Workers must have worked for a certain period of time before they are eligible to receive full benefits under the program which is _____ years in the U.S.
10
To help control cost, the _________ has gradually raised the age of full retirement.
government
________ program was introduced in 1966 as an additional old-age benefit under Social Security
Medicare
________ is a joint federal-state medical insurance program for low-income people.
Medicaid
The federal government funds about _____ of the costs of the program, and the states pay about ____.
63% ; 37%
________ program provides funds for about 26 million low-income people to purchase food.
Food Stamp
_______ benefits include health care coverage and disability payments for services-related illness or injury.
Veteran’s
The largest discretionary expenditure category is __________ which takes up about 50% of the total discretionary budget.
national defense
_______ border protection and the enforcement of some immigration laws falls into the mandatory expenditures category.
Homeland Security
________ is a plan for spending federal tax money.
federal budget
_______ is a 12 month period for which an organization plans its expenditures.
fiscal year
The federal government’s fiscal year runs from _______ through ______.
October 1 ; September 30
________ is prepared by the Office of Management and Budget.
President’s budget
________,by which the government buys goods and services that it needs to operate, such as military equipment and office supplies.
direct spending
________ are money distributed to individuals who do not provide anything in return.
Transfer payments
________ is a transfer payment from the federal government to state or local governments.
grant-in-aid
The federal government influences the economy in three ways:
- Resource allocations
- Income redistribution
- Competition with the private sector
_______ is the part of the economy owned by individuals or businesses.
private sector
