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Related Flashcards
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Cards In This Set
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What usually happens t Presidents that attempt to make tough decisions about the budget?
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-They make the voters angry and usually do not get re-elected back into office. (Examples: George W. Bush, Republicans, ect..) *Cutting Taxes brings in more votes however. Ex: Clinton
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What does the public typically seek in a budget?
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-A balanced one, with little or no cut in government programs, and tax relief.
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What must the President and Congress do every year and why?
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-They must appropriate funds. If they don't the government will not function meaning no army, social security, or welfare.
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What is a budget?
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-A policy document allocating burdens (taxes) and benefits (Expenditures).
**Basically A series of goals with Price Tags attached. |
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What is a deficit?
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-An excess of federal expenditures over federal revenues.
**Spend More than they Make |
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What is an expenditure?
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-Government spending of revenues. Major areas of federal spending are social services and national defense.
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What is a revenue?
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-The financial resources of the government. The individual income tax and social security tax are two major sources of the federal revenue.
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What is an excise tax?
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-A tax levied on the manufacturer, transportation, sale, or consumption of a good. For example those on gasoline.
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What are the three major sources of federal revenues?
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1. Personal and corporate income tax
2. Social Insurance tax 3. Borrowing |
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What is an income tax?
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-Shares of individual wages and corporate revenues collected by the government. The 16th amendment explicitly authorized Congress to levy a tax on income.
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What happened in the S.C. case Pollock vs. Farmers loan and Trust Co? (1895)
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-They declared that the income tax was unconstitutional. Therefore, an amendment had to be passed to legalize the tax.
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What does the 16th Amendment say?
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-The constitutional Amendment adopted in 1913 that explicitly permitted Congress to levy an income tax.
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What is the I.R.S?
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-The Internal Revenue Service. It was created to collect income tax revenue.
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Why don't people like the I.R.S and what happened as a result?
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-People said the IRS abused taxpayers with its aggressive efforts to enforce the tax code. So in 1988, Congress passed a law designed to reign in the IRS and make it more "consumer-oriented".
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Why is the income tax progressive?
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-Those with more taxable income not only pay more taxes but also pay higher rates of tax on that income.
**10% of taxpayers with highest incomes pay about 2/3rds of all income taxes in the country. |
