What does the OMB Stand for? (is involved in creating the federal budget.
What is the Office of Management and Budget.
100
_________ must authorize all federal borrowing.
What is Congress
100
What branch of the government has the power to tax?
What is the Legislative Branch - Congress
100
_______is the shortfall between income and spending.
What is deficit
200
An _________tax is a tax laid on the manufacture, sale, or consumption of goods and/or the performance of services.
What is excise
200
The tax is levied on each person’s taxable income.
What is a individual income tax
200
An ______ tax is a levy imposed on the assets (estate) of one who dies.
What is estate.
200
A _____ tax is one imposed on the making of a gift by a living person.
What is gift.
200
A _________ ____ is a tax laid on goods brought into the U.S. from abroad.
What is custom duty.
300
List two examples of Nontax Revenues used by the federal government.
What is canal tolls; fees for passports, copyrights, and patents; interest earned.
300
OASDI stands for what?
What is the Old-Age, Survivors, and Disability program is the basic Social Security program.
300
The ________ _____ is the government’s total outstanding indebtedness. It includes all of the money borrowed and not yet repaid, plus the accrued, or accumulated, interest.
What is the public debt.
300
___________ is health insurance for the elderly and part of the Social Security program.
What is Medicare
300
The _______________ ___________ program pays benefits to jobless workers and is also part of the overall Social Security program.
What is unemployment compensation
400
List one reason why the United States of American has such a large public debt.
What is
Deficit financing
Failure to repay the debt over time
Interest accruing on the existing debt
400
How does a progressive tax work?
The higher the income and the ability to pay, the higher the tax rate.
400
The Sixteenth Amendment gives Congress the power
What is the power to levy an income tax.
400
What is a Corporation Income Tax?
What is Each corporation must pay a tax on its net income, that is, on the earnings above the costs of doing business.
400
List one of the effects of the United States having public debt.
What is
Increased revenue needed to pay off the debt
Fears of financial obligations for tomorrow’s taxpayers
500
Article I, Section 8, Clause 1 of the Constitution grants Congress
What is the power to tax.
500
Outline each step in the process of creating the federal budget (list all groups involved and in order)
What is
1 fed agencies make their budgets and send them to the OMB
2 the OMB melds budgets into the president's budget
3 the budget is sent to congress
4 the budget is sent to congress reviews the budget and sends it to the president
5. the president can approve the budget or veto it, if he vetoes the budget it can be overridden by congress
500
The power to tax is also limited through the Constitution. According to the Constitution in what ways? List two of the three.
1. Taxes must be used for public purposes only.
2. Federal taxes must be the same in every State.
3. The government may not tax exports.
500
Besides taxing for revenue purposes, the Federal Government sometimes taxes for the purpose of regulating and even discouraging some activity that Congress thinks is ____________ or ____________ to the public.
What is harmful or dangerous.
500
What does Article I, Section 8, Clause 2 of the Constitution state?
What is Congress has the power “[t]o borrow Money on the credit of the United States.” (Article I, Section 8, Clause 2).