Govt Ch 14
Card Set Information
Govt Ch 14
The Congress, President, & Budget: The Politics of Taxing & Spending
a policy document allocating burdens (taxes) and benefits (expenditures)
expenditures > revenues
a tax on the portion of money individuals earn (supported by the 16th amendment)
the greater the income the greater the tax rate
all government money borrowed over the years that is still outstanding
Balanced Budget Amendment
requires Congress to balance peacetime federal budgets
Capital Budget + Examples
a budget for expenditures on items that will serve for long term (ex: roads & buildings
revenue losses that result from special exemptions, exclusions, or deductions on federal tax law
What are 2 conditions associated with government growth in America?
the national security state
rise of the social service state
Military Industrial Complex
the close relationship between the military hierarchy and the defense industry
Describe the rise & fall of the national security state.
Experienced a rise during World War II and a fall after the end of the Cold War.
Describe the rise & fall of the social service state.
Experienced a rise during the Great Depression & the introduction of the New Deal. Has not yet experienced a fall.
Income Security Expenditures
a bundle of policies extending direct and indirect aid to the elderly, poor, or needy
Social Security Act
intended to provide a minimum level of sustenance to older Americans and thus save them from poverty
added to Social Security; provides hospitalization insurance for the elderly and permits older Americans to purchase inexpensive coverage for doctor fees and other health expenses
belief that the best predictor of this years budget is last years buget plus an increment
1/3 of budget follows this theory that government gives a lump sum to agencies to spend over a period of time
expenditures determined by how many eligible beneficiaries there are for a program or by previous obligations of the government
policies for which Congress has obligated itself to pay x level of benefits to y number of recipients
What two committees write the tax codes for the approval of Congress?
House Ways & Means and the Senate Finance
What branch of government holds the "power of the purse"?
Congressional Budget & Impoundment Control Act
designed to reform the congressional budgetary process
In what 3 ways does the Congressional Budget & Impoundment Control Act reform the congressional budgetary process?
fixed budget calendar
budget committee in each house
Congressional Budget office
a resolution binding Congress to 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
an act of Congress that establishes a discretionary government program or an entitlement
funds programs established by authorization bills
laws that allow agencies to spend at the previous years level
Balanced Budget & Emergency Deficit Control Act
mandated max allowable deficit levels for each year until 1993 when the budget was supposed to be in balance
across the board spending cuts
What type of relationship do the budget and government have?
A linear relationship ("big budget, big government")