polsci1101.study.guide.final.3

polsci1101.study.guide.final.3 - POL SCI 1101 Study Guide...

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POL SCI 1101 Page 1 of 3 Study Guide Part 3 of 5 FINAL EXAM CHAPTER 14 The Congress, the President, and the Budget Budget     : a policy document allocating burdens (taxes) and benefits (expenditures) Deficit     : an excess of federal expenditures over federal revenues Expenditures     : government spending of revenues; major areas of federal spending are  social services and national defense Revenues     : the financial resources of the government; the individual income tax and  Social Security tax are two major sources of the federal governments revenue Sources of Federal Revenue: income tax     : shares of individual wages and corporate revenues collected by the  government. The 16     th     amendment      explicitly authorized Congress to levy tax on income income tax is generally  progressive  meaning that those with more taxable income not pay  only more taxes but also pay higher rates of tax on that income social security taxes have grown faster than any other source of federal revenue federal debt     : all the money borrowed by the federal government over the years and still  outstanding. Today the federal debt is more than $9 trillion most economists believe that under some conditions the competition to borrow money  (btwn the fed govt and individuals) increases interest rates and makes it more difficult for  businesses to invest in capital expenditures (such as new plants and equipment) that  produce economic growth foreign investors currently hold about 1/5 of national debt tax loophole- a taw break of tax benefit loopholes are only one type of tax expenditure 1974 Budget Act defines tax expenditures  as revenues losses attributable to provisions of  the federal tax laws which allow a special exemption, exclusion, or deduction Tax expenditures amount to subsidies for different activities:
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This note was uploaded on 07/06/2009 for the course POL 1101 taught by Professor White during the Fall '07 term at Georgia Tech.

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polsci1101.study.guide.final.3 - POL SCI 1101 Study Guide...

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