z: ch 14 final Flashcards
red tape
government procedures
budget
a policy document allocating burdens (taxes) and benefits expenditures.
expenditure
what the government spends money on. government spending—> defense, welfare etc.
income tax
shares of individual wages and corporations revenues.
a) personal: largest single revenue source for the government
b) corporate: companies are required to pay a portion of their revenue
progressive tax
those with more income pay higher rates of tax
social insurance taxes
additional taxes earmarked for specific purposes
social security and medicare
pays benefits to the elderly disabled widowed and the unemployed
borrowing
the treasury department sells bonds guaranteeing to pay interest to the bond holders
defecit
an excess of federal expenditures over federal revenues in ONE year.
debt
the accumulation of all past federal government deficits/ total amount owed by the federal government to others.
omb
analyzes requests and negotiates with the agencies and sens budget to the president for final approval.
cbo
an agency of congress that analyzes presidential budget recommendations and estimates the cost of proposed legislation.
tax loophole
(exploiting a mistake) exceptions or oversights in the tax laq that allows some people and businesses to avoid paying taxes.
national security state
the budget for national security expanded since the cold war and WW2 because the U.S implemented their containment policy to combat communism. in years recent this has shrunk down.
social security state
the new deal by president FDR laid the groundwork for the new social security service to aid Americans during the great depression.
