{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Fall2011-ECO202-mod3-case-BuckmireR

Fall2011-ECO202-mod3-case-BuckmireR - Rodney D Buckmire...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Rodney D. Buckmire ECON 202 Case Assignment 3 Dr. Kernodle 1. What are the three major categories of revenues for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking. 2. What are the three major categories of expenditures for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking. 3. Discuss the current level of the Federal debt, and the past trend of the debt level. Discuss whether or not you are concerned about the current and future projected debt and level of associated interest expense. 4. Assume you are the Chief Economic Advisor to the President of the United States and the President has asked you to review the deficit reduction proposals that were submitted by his commission. Choose the two commission recommendations you agree with the most and write an explanation to the President as to why those two should be enacted into law. Please be detailed rather than general in your recommendation. 5. Economists classify macro-economic indicators as leading, lagging, or coincident. Define each classification and give two examples of each, relating them to the recession that began in 2007 and the recovery that is now under way. 6. All major economic indicators show the United States is recovering from the recession but that the process is not as strong as previous recoveries have been. If you were the President what would you do right now to help the economy recover so that the unemployment rate decreases faster than it has over the past two years? I would like specific suggestions or at least fairly defined generalities.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The three major categories of revenues for the federal government. “Most federal revenues come from individuals. Personal income taxes provide the largest portion of total tax revenues, though some of this is small-business income. Social Security and Medicare payroll taxes are the second-largest source” (Goff, Nix, and Fleming, 2011). Individual taxes accounted for 41.6% of the Federal revenue for 2010, totaling out at $898.5 billion. Payroll taxes accounted for 40% coming in at $846.8 billion; followed by corporate taxes making up 8.9% of federal revenue and totaling only $191.4 billion. According to the Congressional Budget Office projections in 2009, revenue from individuals was anticipated to be $1,199 billion, followed by payroll deductions of $938 billion and corporate taxes of $252 billion. Federal revenue is approximately 17 - 25% of 2010 GDP depending on the source, down from a trend of 30+% from 1977 to 2008 (Chantrill, 2011)(CBO, 2009). Since revenue is a function of taxation, one can infer that as tax revenue has fallen, personal income has fallen; corporate taxes have fallen, and with that social security and Medicare taxes as a payroll tax are reflective of less workers and/or lower wages.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern