Vocabulary 1
A policy document allocating taxes and benefits
What is a Budget?
The 1895 Supreme Court Case that declared income tax unconstitutional before the Constitution was amended in 1913.
Pollock v. Farmer's Loan and Trust Co.
Two developments associated with government growth in the United States are, the rise of what two "States"?
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What is:
1. National Security State
2. Social Service State
What are the three major sources of federal revenue or money?
What are:
1. Personal Income taxes
2. Corporate income taxes
3. Social insurance taxes
What are the two developments associated with government growth in America?
The rise of two states:
1. National security state
2. Social service state
A description of the budget process that creates next year's budget by taking this years budget but adding little more.
Incrementalism
A resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.
What is a budget resolution?
Government spending - Major areas of federal spending social services and national defense.
What is a expenditures?
When the federal governments expenditures (spending) is greater than the revenues (taxes collected)
What is deficit?
All the money the federal government owes
What is the national debt?
When revenues are low and the need for stuff is high, the government does this...
What is government borrowing?
A situation in which the government takes in more revenue (money) than it spends. (Expenditures)
What is a budget surplus?
Result from policies that make some groups, (old, poor) automatically eligible for some benefit. Congress cannot easily control
What are, Uncontrollable Expenditures ?
A congressional process that lowers the amount of the budget and revised to meet some required savings.
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What is reconciliation?
The financial resources of the government. All the money that the government collects from citizens from income tax, Social Security payroll Tax.
What is Revenues?
All the money borrowed by the federal government over the years and is not repaid and interest is collecting. Today it is over 34 Trillion
What is national debt?
The amount by which government spending exceeds tax revenues in a single year
What is a budget deficit?
"The largest determining factor of the size and content of this year's budget is last year's budget".
What type of approach to budgeting is this?
What is Incrementalism?
In 1940, the entire Social Security system was financed with a 3% tax on payroll.
50 workers support one person getting a check.
Today, the number has dropped to 2.8 workers to 1
By 2035 the workers will be 2.3 workers to 1.
What is Not Sustainable?
The House of Representative committee that works with the Senate Finance Committee and writes the tax codes that Congress must approve.
What is the House Ways and Means Committee?
Act of Congress that establishes a government program and sets the maximum amount that can be spent on that program.
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What is a authorization bill?
The deduction from a workers pay that are collected by the government.
What is income tax?
Revenue (tax money) not collected because of exemptions, exclusions, or deductions allowed by federal tax law.
What is Tax Expenditures ?
A 1935 law intended to provide a minimal level of income (money) to older Americans to save them from poverty.
What is the Social Security act?
Policies that Congress has obligated itself to pay a set amount of benefits to recipients.
Example: Social Security Benefits
What is entitlements?
Term used to describe how Social Security is less of an insurance policy than a kind of system where the young work for the old over time.
What is intergenerational Contract?
The Senate committee that works with the House Ways and Means committee to write tax code.
What is the Senate Finance Committee ?
An act of Congress that funds programs within limits established by authorization bills. Good for one year.
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The Constitutional amendment adopted in 1913 that explicitly permits Congress to levy an income tax.
What is the 16th Amendment?
President Eisenhower's phrase that warns about the defense industry that supplies the government with weapons and military hardware.
What is military Industrial Complex?
A program added to the Social Security System in 1965 that provides health insurance for elderly citizens to cover the cost of hospitalization, doctor fees, and other health expenses.
What is Medicare?
A tax idea that is not currently in use where everyone pays the same amount of taxes.
What is a Flat Tax?
How does Harold Lasswell define politics?
Who gets what, when, how?
Advises Congress on the cost of decisions and forecasts revenues from income taxes.
What is the Congressional Budget Office?
When Congress cannot reach agreement and pass a appropriations bill that continue spending at the level of the previous year.
What is a continuing resolution?