Gov't Revenue - Taxation and Income
What is the name of the tax on a tax on items considered undesirable or harmful by society?
Sin tax
What has to happen to change mandatory spending?
Congress has to pass legislation to change the law.
What is a deficit (use revenues and expenses)?
Which bank controls monetary policy in the US?
Federal Reserve Bank or "The Fed"
What is causing the Stock Market to panic?
Tariffs
What are the two primary principles of taxation
Ability to Pay
Benefit
What is the largest part of discretionary spending?
Military
What is a surplus (use revenues and expenses)?
Revenues > Expenses
Which government body determines fiscal policy?
Congress
What kind of semiconductor chips does NVidia make (the company was recently added to the DOW stockmarket index replacing Intel)?
Artificial Intelligence (AI)
What are two taxes (collectively termed FICA on your paycheck) that you are required to contribute to if you work for a private or federal employer?
Social Security and Medicare
How big (in $$) is military spending within $100 billion?
$840 Billion in the 2024 budget
What is the U.S. Debt within $1 Trillion?
$36.6 Trillion
Why would a government cut interest rates?
To spur economic growth
Why was the presidential election considered an economic story?
The new president influences economic policy which could either lead to continued growth or a recession.
Who ultimately pays tariffs levied on imported goods?
US Consumers
What are the two largest components of mandatory spending?
Social Security and Medicare
How is the debt calculated?
By adding up all of the deficits (and surpluses) since the US was founded
Who appoints the Federal Reserve Chairperson?
The President
How much would extending the tax cuts enacted in 2018 cost over the next 10 years (within $1 Trillion dollars)?
$4.2 Trillion
What are the three different types of taxation?
Progressive, Regressive and Proportional
Within 5%, what percentage of the overall budget is mandatory spending?
61%
What two things can a government do to raise more revenue to cover expenditures?
Borrow money (by selling government bonds)
What are two ways the government could raise revenue to offset higher expenditures?
Borrow Money (via government bonds)
When did the government's fiscal year begin?
(The government does not run on a calendar year but rather on a fiscal year. CIVA's fiscal year runs from Aug. 1 - July 31 which is more in line with the school year)
Oct. 1st