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- author "Me"
- tags "The Congress, the President, and the Budget: The Politics of Taxing and Spending"
- description ""
- fileName "AP Gov Chapter 14"
- policy document allocating burdens (taxes) and benefits (expenditures).
An excess of federal expenditures over federal revenues.
Government spending of revenues. Major areas of federal spending are social services and national defense.
- The financial resources of the government. The individual income tax and Social Security tax are two major sources of the federal governments's revenue.
- 3) borrow money bonds, next years budget
- 4) corporations (less and less)
- Shares of individual wages and corporate revenues collected by the government. The Sixteenth Amendment explicitly authorized Congress to levy a tax on income. Progressive from 0% to 49%
- Corporations are paying less
Adopted in 1913, explicitly permitted Congress to levy an income tax.
All the money borrowed by the federal government over the years and still outstanding. Today it's over 15 trillion.
These "holes" in our tax system usually benefit businesses and the wealthy.
- 1981 Reagan, but budget went up.
Relationships of money and government
- Big country= Big gov = big budget
- Money goes to
- 1) defense biggest in 1950's cold war
Revenue losses that result from special exemptions, exclusions or deductions on federal tx law
Social Security Act
Passed in 1935 (During the Great Depression). This was intended to provide a minimal level of sustenance to older Americans and thus save them from poverty. Takes 1/3 of budget.1950, added disability insurance. 1965, medicaid is added. 1980 _ problems life expetancy increased 8 years
A program added to the Social Security system in 1965 that provides hospitalization insurance for the elderly and permits older Americans to purchase inexpensive coverage for doctor fees and other health expenses.
A description of the budget process where the best predictor of this year's budget is last year's budget, plus a little bit more (an increment). According to Aaron Wildavsky, "Most of the budget is a product of previous decisions."
Expenditures that are determined not by a fixed amount of money appropriated by Congress but by how many eligible beneficiaries there are for a program or by previous obligations of the governmet.
Policies for which Congress has obligated itself to pay X level of benefits to Y number of recipients. (ie. Social Security benefits)
House Ways and Means Committee
A committee of the House of Representatives that, along with the Senate Finance Committee, writes the tax codes, subject to the approval of Congress as a whole.
Senate Finance Committee
Writes the tax codes with the House Ways and Means Committee, subject to the approval of Congress as a whole.
Congressional Budget and Impoundment Control Act of 1974
An act designed to reform the congressional budgetary process. Its supporters hoped that it would also make Congress less dependent on the president's budget and better able to set and meet its own budgetary goals.
Congressional Budget Office
Advises Congress on the probable consequences of its decisions, forecasts revenues, and is a counterweight to the president's Office of Management and Budget.
A resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.
A congressional process through which program authorizations are revised to achieve required savings. It usually also includes tax or other revenue adjustments.
An act of Congress hat establishes, continues, or changes a discretionary government program or an entitlement. It specifies program goals and maximum expenditures for discretionary programs.
An act of Congress that actually funds programs within limits established by authorization bills. Appropriations usually cover one year.
When Congress cannot reach agreement and pass appropriations bills, these resolutions allow agencies to spend at the level of the previous year.
- Went down in 60s and 70s
- but social services jump (cilvi rights)
- 90s dramatic decrease (end of cold war
- 2001 largest increase (9/11)
Rise of the Social Service State
- for elderly, poor and needy
- 1935 (biggest jump) social security
Who controls budget?
Congress controls this.
Budget meeting (joint and special)
- Leaders look at:
- Tax revenue
- 2) discretionary spendingand entitlements