Unit 4 Part 2 Policy Flashcards
What is a progressive tax and what an example of one?
A progressive tax is a type of tax that takes a larger percentage of income from taxpayers as their income rises. (Federal Income Tax)
What are the advantages and disadvantages of progressive taxes?
□ Con: Violates the basic principle that all people are equal under the law, since it treats the poor and wealthy differently; the wealthy looks for places to hide their wealth (off shore accounts) □ Pro: Progressive tax gives a government more revenue while also enhancing opportunity for its lower and middle class citizens
What is a regressive tax and what an example of one?
A regressive tax takes a higher percentage of the poor’s income. (Sales tax)
What are the advantages and disadvantages of regressive taxes?
□ Con: None of the “regressive” taxes that are compared with the income tax are tied directly to income.
□ Pro: They are fundamentally fairer than other types of tax and the use of them may have a positive impact on the behavior of members of society.
What are the fives steps in policy making?
agenda setting, formulation, adoption, implementation, and evaluation.
What does domestic Policy refer to?
the social policies of the US in the areas of crime prevention, edu., energy, environment, health care, and welfare
What acts were implemented to reduce air pollution?
Clean Airs Acts of 1970 and 1990
What act was implemented to clean up the nation’s lakes and rivers.
Water Pollution Control Act of 1972
What did the environmental impacts statements require?
studies and reports of likely environmental impacts be filed with the Environmental Protection Agency.
What is nondiscretionary spending?
spending about which the government is required to spend due to existing laws like social security
What is the OMB and what does it do?
the Office of Management and Budget works with presidential staff and the executive agencies to create a budget to submit to Congress.
What does the Congressional Budget Office do?
provide Congress with economic data.
What is the underemployment rate?
the unemployment rate plus the percentage of Americans who are discouraged to finding work
What is monetary policy?
the economic policy that the supply of money is the key to nation’s economic health
What is fiscal policy?
the use of the federal budget through taxing, spending, and borrowing
