Gov 14.txt

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Gov 14.txt
2012-01-08 02:01:56
gov chapter 14

gov chapter 14
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  1. Budget
    A policy document allocating burdens (taxes) and benefits (expenditures)
  2. Deficit
    An excess of federal expenditures over federal revenue in a given year
  3. Expenditures
    • Government spending of revenue
    • Major areas of spending are social services and nat'l defense
  4. Revenues
    • Financial resources of the government
    • Major sources are income taxes and Social Security taxes
  5. Income tax
    • Shares of an individual's wages and corporate revenue collected by the gov't
    • 16th amendment gave congress the power to levy income taxes
  6. Sixteenth Amendment
    • Adopted 1913
    • Permits congress to levy income tax
  7. Federal debt
    • All the money borrowed by the Feds over the years
    • Today more than 9 trillion
  8. Tax expenditures
    • Revenue losses that result from special exemptions, exclusions or deductions on federal tax law
    • Money the gov't would've gotten without an exemption
  9. Social Security Act
    • Law passed in 1935 during the Great Depression
    • Minimum level of sustenance to the elderly
    • Save the elderly from poverty
  10. Medicare
    • Added to Social Security in 1965
    • Provides hospitalization insurance for the elderly
    • Gives elderly inexpensive coverage for doctor fees and other health expenses
  11. Incrementalism
    • Description of the budget process
    • Predictor for current year is previous year's budget plus a little more
  12. Uncontrollable expenditures
    • Determined not by a fixed amount of money and congress, but by how many people are in the program
    • Previous obligation from gov't
  13. Entitlements
    • Policies congress is obligated to pay X $ to Y people
    • Social Security
  14. House Ways and Means Committee
    • HOR committee that writes the tax codes
    • Subject to overall congressional approval
  15. Senate Finance Committee
    • Senate committee that writes the tax codes
    • Subject to overall Congressional approval
  16. Congressional Budget and Impoundment Control Act of 1974
    • Designed to reform the budgetary process
    • Make Congress less dependent on the president's budget
  17. Congressional Budget Office
    Advises Congress on the probable consequences of its decisions, predicts revenues and is a check on the OMB
  18. Budget resolution
    • A resolution binding Congress to an expenditure level
    • Bottom line of all federal spending for all programs
  19. Reconciliation
    • Congressional process where authorizations are revised to achieve required savings
    • Taxes or other revenue adjustments
  20. Authorization bill
    • Establishes, continues, or changes a discretionary gov't program
    • Program goals and max expenditures for discretionary programs
  21. Appropriations bill
    • Funds programs within the limits of an authorization bill
    • Cover one year
  22. Continuing resolutions
    When Congress cannot reach an agreement to pass appropriation laws, they allow agencies to spend the same as the previous year