Taxation
What is taxation?
the collection of a percentage of taxpayers' incomes to help support the government and other services
the budget for the executive branch of the U.S. Government
Executive budget
What are the three types of spending?
1. discretionary spending
2. mandatory spending
3. politically uncontrollable spending
What is a payroll tax?
Tax deducted from a workers paycheck.
the authority for the agencies to spend the government funds
Budget authority
government payment on programs implemented through an appropriations bill
Discretionary spending
What is the difference between a progressive tax and regressive tax?
Progressive tax is a tax that takes a larger percentage of the income from the rich than the poor.
Regressive tax is a tax that takes a larger percentage of the income from the poor than the rich.
money left over after all expenses are paid
Budget surplus
spending on certain programs that are required by existing law
mandatory spending
a tax that takes the same percentage of the income from each taxpayer's income
Proportional tax
when more money spent than collected through revenues
Budget deficit
spending on programs that are so popular that elected officials are not willing to change the laws that authorize the programs for fear of the effect on their reelection prospects
Politically uncontrollable spending
What state has the highest taxes?
California
Who's the only president to balance the federal budget
Bill Clinton
What is the difference between mandatory spending and politically uncontrollable spending?
Mandatory spending is required, but politically uncontrolled spending is influenced by the opinion of the majority of the public.