Understanding the Federal Budget

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Understanding the Federal Budget"

Transcription

1 netw rks There s More Online! GRAPHIC ORGANIZER Government Budget CHART The Federal Budget Process INFOGRAPHICS The Federal Budget, FY 2011 State and Local Government Revenue and Expenditures GRAPHS Comparing Federal Spending State Income Tax Revenue Property Tax Revenue GAME STEP 2 House and Senate pass budget resolutions that outline spending and taxes 1.7% 2.2% 5.9% Lesson 1 The Federal Budget: Revenues and Expenditures ESSENTIAL QUESTION How does government influence the economy and economic institutions? 30.0% 25.9% 34.3% NGSSS covered in Understanding the Federal Budget SS.7.E.1.2 Discuss the importance of borrowing and lending in the United States, the government s role in controlling financial institutions, and list the advantages and disadvantages of using credit. SS.7.E.1.6 Compare the national budget process to the personal budget process. SS.7.E.2.1 Explain how federal, state, and local taxes support the economy as a function of the United States government. LA The student will use new vocabulary that is introduced and taught directly. LA The student will determine the main idea or essential message in grade-level or higher texts through inferring, paraphrasing, summarizing, and identifying relevant details. Reading HELPDESK It Matters Because Government tax and spending policies affect you. Understanding the Federal Budget GUIDING QUESTION How does the federal budget reflect choices? Do you know how to make a personal budget? First, you figure out what your income is for a period of time, such as a month. Then, you estimate your savings and expenses for that month. You must think about regular expenses, such as weekly food costs. You also have to account for occasional costs such as a birthday present for a parent. If expenses exceed, or are greater than, income, then you need to cut costs or find a way to earn more income. The Budget Process The federal government also has a budget. The federal budget covers a period called a fiscal (FIHS kuhl) year. A fiscal year is any 12-month period chosen for keeping accounts. The fiscal year of the federal government begins October 1 and ends September 30 of the next year. Fiscal year 2015 begins October 1, 2014, and ends September 30, The diagram of the federal budget process shows the steps in making a federal budget. This process is complex because of the size of the budget and the number of parties involved. PHOTO: (tc) William Perlman/Star Ledger/Corbis Taking Notes: Categorizing As you read, create a concept web linking related concepts, such as taxes and revenues. LA Financing the Government Government Budget Revenues Content Vocabulary fiscal year appropriations bill mandatory spending intergovernmental revenue discretionary spending sales tax

2 The process starts when the president transmits, or sends, a budget message to Congress. This message states how much the president wants to spend on each federal program. The message must be sent no later than the first Monday in February. Next, key members of Congress agree on a budget resolution. This is Congress s plan for revenue and for spending on broad categories such as health. The budget has two different kinds of spending: mandatory and discretionary. Mandatory spending is set by laws outside the budget process. One example is Social Security, which makes payments to retirees. Mandatory spending is generally fixed from year to year. Discretionary (dis KREH shuh nehr ee) spending involves spending choices made and approved each year. It includes items such as national defense and highways and can differ from year to year. Next, Congress must set spending on each program for the coming year. That process starts when committees in the House write appropriations bills. An appropriations (uh proh pree AY shuhnz) bill gives official approval for the government to spend money. All appropriations bills start in the House but must be approved by both houses. After the Senate and House pass each bill, it is sent to the president. The president can either sign it into law or veto it. If the bill is vetoed, Congress can rewrite the bill or override the veto. Sometimes Congress does not pass the budget in time. It then approves a continuing resolution. This law sets spending for the coming year at the same level as the year before. THE FEDERAL BUDGET PROCESS CHART SKILLS Congress faces deadlines for acting on the budget. It is supposed to approve the budget resolution by April 15. It does not always meet this date, however. STEP 1 President sends Congress a budget message that: expenses; priorities; STEP 2 House and Senate pass budget resolutions that outline spending and taxes Caps on spending are set STEP 3 House and Senate pass bills authorizing spending, 1 Make Connections Why are tax revenue estimates included in the budget? 2 Make Inferences What relationship does the budget resolution have to the president s budget? LA entitlement program subsidize property tax fiscal year any 12-month period chosen for keeping accounts mandatory spending the federal spending required by law that continues without the need for congressional approval each year Lesson 1 607

3 THE FEDERAL BUDGET, FY 2011* Receipts 3.4% 43.7% 1.0% 1.0% 11.6% 36.4% 2.9% FY 2011 Receipts $2,567 Expenditure $3,834 (Deficit) $1,267 (in billions of dollars) Expenditures 15.7% 19.6% 6.5% 10.5% 19.2% 13.0% 15.5% Personal income tax Payroll tax Corporate income tax Excise tax Estate tax Customs duties National defense Social security Income security Medicare Health Interest on debt Source: Economic Report of the President 2010; figures given are estimates for FY 2011 INFOGRAPHIC Federal spending for Fiscal Year 2011 was nearly $354 trillion higher than revenues for that year. You will learn more about this in Lesson 2. 1 Make Predictions What happens to federal revenue when many people lose their jobs? Why? 2 Categorize What are the two largest spending categories? Which is mandatory and which is discretionary? LA Reading HELPDESK Revenues The federal budget is made up of two main parts revenues and expenditures. Revenue is the money a government collects to fund its spending. The biggest source of federal revenue is the personal income tax. This tax is paid by all people who earn income above a certain amount. The second-largest share of revenue is from payroll taxes. These are taken from workers paychecks to fund social insurance programs such as Social Security and Medicare. Medicare provides some health care coverage for people age 65 and older. The third-largest source of revenue comes from the tax that corporations pay on their profits. Taxes fall into three categories: progressive, proportional, and regressive. With a progressive tax, the tax rate goes up as income goes up. The federal income tax is a progressive tax. A proportional tax has a constant tax rate, regardless of income. The tax for Medicare is proportional because it is the same rate for all wage earners. A regressive tax takes a smaller percentage of your income as the amount you earn goes up. The sales tax is an example of a regressive tax. discretionary spending the spending for federal programs that must receive approval each year appropriations bill the legislation that sets spending on particular programs for the coming year Academic Vocabulary exceed to be greater than transmit to send a document or a message 608 Financing the Government

4 PHOTO: William Perlman/Star Ledger/Corbis Expenditures The circle graph of federal expenditures shows federal spending for Fiscal Year National defense spending is the largest category. Close behind is Social Security. Spending in this area will likely increase in the future as the population ages and more people retire. Income security ranks third. It includes unemployment benefits, welfare, and retirement benefits for some government workers and other groups. The fourth category is Medicare. This area is also likely to rise as the population ages. The fifth-largest category is health. This includes health care and long-term care for low-income people of all ages as well as those with disabilities. The sixth category is interest on borrowed money. When the federal government borrows, it must pay interest on the debt, just like any consumer who takes out a loan. As government borrowing goes up, so does the interest it owes. includes programs in education, veteran benefits, and highway costs. Spending in the other category is discretionary spending. How the Budget Process Changed Over Time When the federal government began, it had fewer sources of revenue and spent less than government today. The budget process was very informal, with little overall planning. Over time, federal spending increased. As a result, the budget process had to be improved. Congress passed a law in 1921 that made the process more formal. For the first time, the president was required to send a budget to Congress each year. In 1974 Congress passed another law to improve the budget process. It required Congress to set up committees to focus on the budget. It also set up the Congressional Budget Office (CBO). That office has the job of tracking spending and revenue measures and making reports to Congress. The budget process still faces difficulties today, however. Members of Congress often add spending for pet projects to major bills. These addons can increase overall spending. PROGRESS CHECK Comparing and Contrasting How is making the federal budget similar to and different from making a personal budget? Elderly people have much of their health care costs covered by the Medicare program. Making Connections What source of revenue pays for this program? SS.7.E.2.1 Lesson 1 609

5 Florida CONNECTION State Taxes Only a handful of states, including Florida, do not require residents to pay state income tax. This makes Florida an appealing place to live and work. Florida does have a 6 percent state sales tax though. In addition, local sales taxes vary from region to region. For example, the tax for hotel rooms may be as high as 13 percent in some areas and less than 10 percent in others. SS.7.E.2.1 NGSSS covered in Budgeting for State and Local Governments SS.7.E.2.1 Explain how federal, state, and local taxes support the economy as a function of the United States government. Reading HELPDESK Budgeting for State and Local Governments GUIDING QUESTION How do state and local revenues and expenditures differ from those of the federal government? State and local governments also prepare budgets. The governments of all states except Vermont cannot, by law, spend more than they receive in revenue. Local governments also have to limit spending so it does not exceed revenues. State Governments The circle graphs of state government revenue and spending are for all states combined. Intergovernmental revenue is the largest source of state income. This refers to funds that one level of government receives from another level of government. States receive this money from the federal government. Sales taxes are the states second-most-important source of revenue. A sales tax is paid when someone buys a good or service. All but five states have sales taxes. Tax rates range from 2.9 percent to 7 percent. A 3 percent sales tax on clothing means that a person spending $100 on clothes pays another $3 in taxes. Sales taxes can be regressive and hurt the poor, however. As a result, many states do not tax essential goods, such as food and medicine. Some states also declare sales tax holidays. During these periods, purchases of school supplies are not taxed. All but five states have a personal income tax. In some states this tax is proportional, with all taxpayers paying a flat rate. In others it is progressive, with high incomes taxed at higher rates. The single biggest area of state spending is public welfare. This refers to programs meant to help those people with little money to maintain basic health and living conditions. Most of this spending goes to states share of funding of entitlement programs. These are called entitlements because the requirements for benefits are set by law. An example is the Medicaid program. This program helps poor people get health care services. Education is another large category of state spending. Some of this spending goes to local governments to help fund public schools. Some of it is used to subsidize (SUHB suh deyez), or pay part of the cost of, students state college education. This subsidy helps make state colleges more affordable. intergovernmental revenue the funds that one level of government receives from another level of government sales tax a tax paid by consumers at the time they buy goods or services entitlement program a government program that makes payments to people who must meet certain requirements in order to help them meet minimum health, nutrition, and income needs subsidize to aid or support a person, business, institution, or undertaking with money or tax breaks 610 Financing the Government

6 STATE AND LOCAL GOVERNMENT REVENUE AND EXPENDITURES STATE GOVERNMENT REVENUE STATE GOVERNMENT EXPENSES 13.4% 26.6% 27.6% 42.6% 20.4% 3.4% 3.1% Intergovernmental revenue Sales and gross receipts Personal income tax 17.2% 22.1% Corporate income tax Retirement and unemployment insurance receipts Miscellaneous revenue 10.5% Education Public welfare Health and hospitals Highways 5.3% 5.2% 2.6% Interest on general debt Retirement and unemployment insurance LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENT EXPENSES 30.0% 34.3% 43.4% 37.3% 1.7% 2.2% 5.9% 25.9% Intergovernmental revenue Property tax Sales tax Personal and corporate income tax taxes Miscellaneous revenue 7.3% 4.9% 3.9% Education Highways Public welfare Police protection Health and hospitals 3.2% Source: U.S. Bureau of the Census, Statistical Abstract of the United States INFOGRAPHIC SKILLS The federal government provides money to state governments. State governments, in turn, provide funds for local governments. 1 Comparing What is one specific tax that local government collects and state government does not? 2 Making Inferences Which level of government, state or local, would be hurt more by an end to intergovernmental revenue? Why? LA Lesson 1 611

7 21 st Century SKILLS Internet Research Use the Internet to find out how your state ranks among other states in terms of state sales taxes and personal income taxes. In a few sentences, explain how this information might influence people to live in your state. LA refers to additional state spending in all other areas. This includes insurance payments to retired state employees and spending in such areas as state police, prisons, and parks. Local Governments Like states, local governments must raise money. The biggest difference is that, unlike state governments, local governments rely heavily on property taxes. A property tax is a tax based on the value of land and property that people own. Generally, the higher the value of the property, the higher the property tax that is paid. Many states allow their local governments to charge sales taxes and collect income taxes as well. Fines for traffic and other violations, along with fees for permits and special services, also provide income for local governments. Local governments provide many of the basic services on which citizens depend. Education is the largest portion of local spending. Police and fire protection are another important part of local budgets. Police services are always provided by professionals. Fire protection can be provided by volunteers in small communities. Larger cities, though, have professionals as firefighters. Local governments build and maintain city and county streets, too. In areas with harsh winter weather, city workers must clear the streets of snow and apply salt to melt snow and ice to make driving safe. Finally, local governments supply people with water, remove and treat sewage, and take care of trash removal. Larger communities have staffs of workers to do these jobs. PROGRESS CHECK property tax a tax on the value of land and property that people own Summarizing What is the biggest spending area for state governments? What is the largest local government expenditure? LESSON 1 REVIEW Review the Vocabulary 1. What is a fiscal year? How is it related to a budget? LA What is the difference between mandatory and discretionary spending? LA What is intergovernmental revenue? How does it subsidize lower levels of government? LA Answer the Guiding Questions 4. Analyzing What kinds of choices are involved in making the federal budget? SS.7.E Financing the Government 5. Comparing and Contrasting How are tax revenues spent differently by state, local, and federal governments? SS.7.E NARRATIVE WRITING Write a paragraph explaining the process by which the federal government prepares a budget and makes spending decisions. Include all steps through appropriations. SS.7.E.1.6

1. A is a tax system which has higher tax rates on people with lower incomes.

1. A is a tax system which has higher tax rates on people with lower incomes. Homework 15 1. A is a tax system which has higher tax rates on people with lower incomes. A. regressive tax B. progressive tax C. flat tax D. a value added tax 2. The is calculated by taking the total

More information

Introduction to the Federal Budget Process

Introduction to the Federal Budget Process v Introduction to the Federal Budget Process The Congressional Budget Act of 1974 lays out a formal framework for developing and enforcing a budget resolution to guide the budget process. Updated February

More information

Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy

Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Machine-graded assessment question pools are provided for your reference and are organized by learning outcome. It is your responsibility

More information

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Chapter 15 review Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Every hour, the federal government spends about a. $250 thousand. c. $250

More information

Macroeconomics Instructor Miller Fiscal Policy Practice Problems

Macroeconomics Instructor Miller Fiscal Policy Practice Problems Macroeconomics Instructor Miller Fiscal Policy Practice Problems 1. Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives.

More information

March 19, 2014 The President s Budget in Pictures By Jasmine Tucker Chart assistance by Daniel Gautreau

March 19, 2014 The President s Budget in Pictures By Jasmine Tucker Chart assistance by Daniel Gautreau nationalpriorities.org research@nationalpriorities.org (413) 584 9556 March 19, 2014 The President s Budget in Pictures By Jasmine Tucker Chart assistance by Daniel Gautreau President Obama recently released

More information

Chapter 09 Federal Spending

Chapter 09 Federal Spending Chapter 09 Federal Spending Multiple Choice Questions 1. Federal Spending in 2006 was a. $2.0 billion b. $2.0 trillion c. $2.2 trillion D. $2.8 trillion 2. Federal Spending as a percentage of GDP peaked

More information

Historical U.S. Debt

Historical U.S. Debt Q&A: Everything You Need to Know About the National Debt CHAIRMEN MICHAEL BLOOMBERG JUDD GREGG EDWARD RENDELL How big is the debt? Currently, the national debt held by the public is about $14 trillion,

More information

Description of Budget Cycle

Description of Budget Cycle Description of Budget Cycle The budget process in the City of Yonkers begins in December each year when budget preparation packages are sent to departments by the Office of Management and Budget. The departments

More information

The Truth about the State Employees Retirement System of Illinois

The Truth about the State Employees Retirement System of Illinois The Truth about the State Employees Retirement System of Illinois The State Employees Retirement System (SERS) began in 1944 as a core benefit for state and local employers to use in attracting and retaining

More information

Federal Spending During the G.W. Bush and Obama Administrations

Federal Spending During the G.W. Bush and Obama Administrations Federal Spending During the G.W. Bush and Obama Administrations Many Republicans have been shouting that Federal spending is out of control under President Obama, and that he has wasted enormous sums on

More information

Overview of Policy Options to Sustain Medicare for the Future

Overview of Policy Options to Sustain Medicare for the Future Overview of Policy Options to Sustain Medicare for the Future Juliette Cubanski, Ph.D. Associate Director, Program on Medicare Policy Kaiser Family Foundation jcubanski@kff.org Medicare NewsGroup Journalism

More information

Expanding Health Coverage in Kentucky: Why It Matters. September 2009

Expanding Health Coverage in Kentucky: Why It Matters. September 2009 Expanding Health Coverage in Kentucky: Why It Matters September 2009 As the details of federal health reform proposals consume the public debate, reflecting strong and diverse opinions about various options,

More information

Review of Arkansas Unemployment Insurance By Kenny Hall, Executive Vice President Arkansas State Chamber of Commerce/Associated Industries of Arkansas

Review of Arkansas Unemployment Insurance By Kenny Hall, Executive Vice President Arkansas State Chamber of Commerce/Associated Industries of Arkansas Review of Arkansas Unemployment Insurance By Kenny Hall, Executive Vice President Arkansas State Chamber of Commerce/Associated Industries of Arkansas Part 1 A major topic of discussion this session will

More information

Written Testimony. William Leith Chief Business Operations Officer Federal Student Aid U.S. Department of Education

Written Testimony. William Leith Chief Business Operations Officer Federal Student Aid U.S. Department of Education Written Testimony William Leith Chief Business Operations Officer Federal Student Aid U.S. Department of Education Indebted for Life: Older Americans and Student Loan Debt U.S. Senate Special Committee

More information

The Congress, the President, and the Budget: The Politics of Taxing and Spending

The Congress, the President, and the Budget: The Politics of Taxing and Spending Edwards, Wattenberg, and Lineberry Government in America: People, Politics, and Policy Thirteenth Edition Chapter 14 The Congress, the President, and the Budget: The Politics of Taxing and Spending Introduction!

More information

Recent Trends in Health Care Costs. Council of Economic Advisers

Recent Trends in Health Care Costs. Council of Economic Advisers Recent Trends in Health Care Costs Council of Economic Advisers September 24, 214 I. Recent Progress on Health Costs The Three Years After 21 Saw the Slowest Growth in Real Per Capita National Health Expenditures

More information

The Solutions Initiative II

The Solutions Initiative II The Heritage Foundation Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity Alison Acosta Fraser, William W. Beach, and Stuart M. Butler, Ph.D. INTRODUCTION

More information

The GPO predominantly penalizes women educators in California, while the WEP penalizes many individuals who switch careers into public service.

The GPO predominantly penalizes women educators in California, while the WEP penalizes many individuals who switch careers into public service. Chair Pomeroy and Members, Social Security has met the social insurance promise to ensure workers will not have to live in old age poverty. This promise needs to be guaranteed for current and future workers.

More information

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt Copyright 2011 by Pearson Education, Inc. Chapter 14 Deficit Spending and The Public Debt All rights reserved. Introduction Since 2007, the ratio of the official real net public debt to real GDP has increased

More information

Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN$

Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN$ 2015 Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN$ 2015 Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN Thomas A. Roe Institute for

More information

NC State and Local Government

NC State and Local Government Practice Test NC State and Local Government Note to teachers: These unofficial sample questions were created to help students review state and local government content, as well as practice for the Civics

More information

Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030.

Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030. Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030. Dollars in Billions that you need to cut to get under 60% of the GDP by 2018. $0 See

More information

DEPARTMENT OF LABOR. Introduces bold reforms to strengthen Job Corps by improving its outcomes and costeffectiveness.

DEPARTMENT OF LABOR. Introduces bold reforms to strengthen Job Corps by improving its outcomes and costeffectiveness. DEPARTMENT OF LABOR Funding Highlights: Provides $12 billion in discretionary funding, a slight reduction from the comparable 2012 level. The Budget continues critical investments in job training and resources

More information

U.S. Government Receivables and Debt Collection Activities of Federal Agencies

U.S. Government Receivables and Debt Collection Activities of Federal Agencies FISCAL YEAR 2014 REPORT TO THE CONGRESS U.S. Government Receivables and Debt Collection Activities of Federal Agencies Department of the Treasury May 2015 department of the treasury washington, dc office

More information

H.R. 3813 Securing Annuities for Federal Employees Act of 2012

H.R. 3813 Securing Annuities for Federal Employees Act of 2012 CONGRESSIONAL BUDGET OFFICE COST ESTIMATE February 9, 2012 H.R. 3813 Securing Annuities for Federal Employees Act of 2012 As ordered reported by the House Committee on Oversight and Government Reform on

More information

At the end of Chapter 10, you will be able to answer the following:

At the end of Chapter 10, you will be able to answer the following: 1 Objectives for Chapter 10 The Circular Flow Model At the end of Chapter 10, you will be able to answer the following: 1. Explain the basic circular flow model. 2. Define "consumption" and "saving" 3.

More information

Legislative Health and Human Services Committee

Legislative Health and Human Services Committee Legislative Health and Human Services Committee Fiscal Impact of Federal Sequestration on Health and Human Services Programs in New Mexico Ruby Ann Esquibel, Principal Analyst Legislative Finance Committee

More information

Health Care Implementation Timeline

Health Care Implementation Timeline Health Care Implementation Timeline The massive healthcare (H.R. 3590) and its companion reconciliation bill (H.R. 4872) passed by the Senate and House in early 2010 will go into effect over several years.

More information

WHY STUDY PUBLIC FINANCE?

WHY STUDY PUBLIC FINANCE? Solutions and Activities to CHAPTER 1 WHY STUDY PUBLIC FINANCE? Questions and Problems 1. Many states have language in their constitutions that requires the state to provide for an adequate level of education

More information

BUDGET in BRIEF. University of Wisconsin Madison Budget Report 2015 2016

BUDGET in BRIEF. University of Wisconsin Madison Budget Report 2015 2016 BUDGET in BRIEF University of Wisconsin Madison Budget Report 2015 2016 This document is intended to provide an easy-to-understand glimpse of UW Madison s budget picture. Spending information included

More information

Timeline of New Health Care Law and Its Impact on American Businesses

Timeline of New Health Care Law and Its Impact on American Businesses Timeline of New Health Care Law and Its Impact on American Businesses Summaries of the Patient Protection and Affordable Health Care Act (Public Law 111-148) Health Care and Education Reconciliation Act

More information

The Fiscal Cost of Unlawful Immigrants and Amnesty to the U.S. Taxpayer

The Fiscal Cost of Unlawful Immigrants and Amnesty to the U.S. Taxpayer The Fiscal Cost of Unlawful Immigrants and Amnesty to the U.S. Taxpayer by Robert Rector and Jason Richwine, PhD SPECIAL REPORT No. 133 MAY 6, 2013 from THE DOMESTIC POLICY STUDIES DEPARTMENT The Fiscal

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from

More information

THE AMERICAN JOBS ACT: THE IMPACT FOR AFRICAN-AMERICAN FAMILIES AND THE ECONOMY

THE AMERICAN JOBS ACT: THE IMPACT FOR AFRICAN-AMERICAN FAMILIES AND THE ECONOMY THE AMERICAN JOBS ACT: THE IMPACT FOR AFRICAN-AMERICAN FAMILIES AND THE ECONOMY The American Jobs Act reflects a commitment to strengthen the recovery and help increase access to jobs for all Americans.

More information

A HAND UP How State Earned Income Tax Credits Help Working Families Escape Poverty in 2004. Summary. By Joseph Llobrera and Bob Zahradnik

A HAND UP How State Earned Income Tax Credits Help Working Families Escape Poverty in 2004. Summary. By Joseph Llobrera and Bob Zahradnik 820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org May 14, 2004 A HAND UP How State Earned Income Tax Credits Help Working Families Escape

More information

Economics 101 Multiple Choice Questions for Final Examination Miller

Economics 101 Multiple Choice Questions for Final Examination Miller Economics 101 Multiple Choice Questions for Final Examination Miller PLEASE DO NOT WRITE ON THIS EXAMINATION FORM. 1. Which of the following statements is correct? a. Real GDP is the total market value

More information

Updated Estimates for the Insurance Coverage Provisions of the Affordable Care Act

Updated Estimates for the Insurance Coverage Provisions of the Affordable Care Act MARCH 2012 Updated Estimates for the Insurance Coverage Provisions of the Affordable Care Act In preparing the March 2012 baseline budget projections, the Congressional Budget Office (CBO) and the staff

More information

Forecasting Enrollment and Subsidies in the ACA Exchanges

Forecasting Enrollment and Subsidies in the ACA Exchanges Congressional Budget Office Forecasting Enrollment and Subsidies in the ACA Exchanges Roundtable: Forecasting the Effects of Public Policies on Budgets and People Association for Public Policy Analysis

More information

AP UNITED STATES GOVERNMENT AND POLITICS 2006 SCORING GUIDELINES. Question 2

AP UNITED STATES GOVERNMENT AND POLITICS 2006 SCORING GUIDELINES. Question 2 AP UNITED STATES GOVERNMENT AND POLITICS 2006 SCORING GUIDELINES Question 2 6 points Part (a): 1 point One point is earned for a definition: Entitlement programs are government-sponsored programs providing

More information

Financial Planning. Introduction. Learning Objectives

Financial Planning. Introduction. Learning Objectives Financial Planning Introduction Financial Planning Learning Objectives Lesson 1 Budgeting: How to Live on Your Own and Not Move Home in a Week Prepare a budget and determine disposable income. Identify

More information

Insurance Coverage Provisions of the Affordable Care Act CBO s February 2014 Baseline

Insurance Coverage Provisions of the Affordable Care Act CBO s February 2014 Baseline Insurance Coverage Provisions of the Affordable Care Act CBO s February 2014 Baseline Table 1. Effects on the Deficit of the Insurance Coverage Provisions of the Affordable Care Act Table 2. Effects of

More information

DEFERRED PAYMENT AGREEMENT. Information Pack for our service users and their families or representatives

DEFERRED PAYMENT AGREEMENT. Information Pack for our service users and their families or representatives 12 WEEK PROPERTY DISREGARD PERIOD AND THE DEFERRED PAYMENT AGREEMENT Information Pack for our service users and their families or representatives What is the 12 week Property Disregard Period? The Council

More information

3% WITHHOLDING ON GOVERNMENT CONTRACTS POLITICS ON STEROIDS

3% WITHHOLDING ON GOVERNMENT CONTRACTS POLITICS ON STEROIDS 3% WITHHOLDING ON GOVERNMENT CONTRACTS POLITICS ON STEROIDS Richard E. Gavin, CPA, CCIFP with contributions from Steve Mannhaupt, CPA and Alice Varisano, CPA When baseball players were unknowingly on steroids

More information

I. Introduction to Taxation

I. Introduction to Taxation University of Pacific-Economics 53 Lecture Notes #17 I. Introduction to Taxation Government plays an important role in most modern economies. In the United States, the role of the government extends from

More information

AMERICANS VIEWS OF THE ECONOMY AND THE STATE OF THE COUNTRY March 28- April 2, 2008

AMERICANS VIEWS OF THE ECONOMY AND THE STATE OF THE COUNTRY March 28- April 2, 2008 CBS NEWS/NEW YORK TIMES POLL For Release: Thursday, April 3 rd, 2008 6:30 PM (EDT) AMERICANS VIEWS OF THE ECONOMY AND THE STATE OF THE COUNTRY March 28- April 2, 2008 Americans views about the economy

More information

Chapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.)

Chapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.) Chapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to a formal analysis of fiscal policy, and puts it in context with real-world data and

More information

A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY

A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY This bipartisan, comprehensive, and balanced plan consistent with the recommendations of the Bowles-Simpson fiscal commission that will:

More information

It Is In Your Interest

It Is In Your Interest STUDENT MODULE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Jason did not understand how it

More information

Chapter 9 Practice Test Multiple Choice Identify the choice that best completes the statement or answers the question.

Chapter 9 Practice Test Multiple Choice Identify the choice that best completes the statement or answers the question. Chapter 9 Practice Test Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The authority to levy a federal tax comes from a. the Fifth Amendment. c. an act

More information

cepr briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers CENTER FOR ECONOMIC AND POLICY RESEARCH SUMMARY Dean Baker 1

cepr briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers CENTER FOR ECONOMIC AND POLICY RESEARCH SUMMARY Dean Baker 1 cepr CENTER FOR ECONOMIC AND POLICY RESEARCH briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers Dean Baker 1 July 23, 2001 SUMMARY The United States government has never

More information

Personal Financial Literacy

Personal Financial Literacy Personal Financial Literacy 7 Unit Overview Being financially literate means taking responsibility for learning how to manage your money. In this unit, you will learn about banking services that can help

More information

The conflict of employment and payroll taxes

The conflict of employment and payroll taxes The conflict of employment and payroll taxes Human input in the process of providing goods or services is in a class by itself. In fact, it might actually be the only real factor of production It is thus

More information

Things New Yorkers Should Know About. Public Retirement Benefits in New York State

Things New Yorkers Should Know About. Public Retirement Benefits in New York State Things New Yorkers Should Know About Public Retirement Benefits in New York State October 2010 INTRODUCTION Citizens Budget Commission One Penn Plaza, Suite 640 New York, NY 10119 411 State Street Albany,

More information

Government Budget and Fiscal Policy CHAPTER

Government Budget and Fiscal Policy CHAPTER Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the federal

More information

NJ CUPA HR The Affordable Care Act & Its Implication for Employers April 4, 2014

NJ CUPA HR The Affordable Care Act & Its Implication for Employers April 4, 2014 NJ CUPA HR The Affordable Care Act & Its Implication for Employers April 4, 2014 About NJBIA Represents 21,000 companies of all sizes and types, which employ over 1 million workers in the State. Advocate

More information

Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN

Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN 2014 Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN 2014 Federal Budget in Pictures CUT SPENDING // FIX THE DEBT // REDUCE THE TAX BURDEN The Thomas A. Roe Institute for

More information

($930) ($913) ($887) (10.3%) (10.2%) (10.1%) Per pupil Revenue by Source

($930) ($913) ($887) (10.3%) (10.2%) (10.1%) Per pupil Revenue by Source North Carolina by Meagan Batdorff Summary and Highlights This snapshot examines the revenue sources and funding equity for district public schools and charter schools in North Carolina and, in particular,

More information

Distribution of Spending

Distribution of Spending Massachusetts State Budget Distribution of Spending Where Does the Money Go? Local Aid to Cities & Towns 5.6% Debt Service 6.3% ER INC 1871 REVERE Interest Due $ Other 13.6% Examples: Environmental programs

More information

The Long-Term Budgetary Impact of Paths for Federal Revenues and Spending Specified by Chairman Ryan

The Long-Term Budgetary Impact of Paths for Federal Revenues and Spending Specified by Chairman Ryan MARCH 2012 The Long-Term Budgetary Impact of Paths for Federal Revenues and Spending Specified by Chairman Ryan At the request of the Chairman of the House Budget Committee, Congressman Paul Ryan, the

More information

Accounts Receivable Report

Accounts Receivable Report Accounts Receivable Report For the Fiscal Year Ended June 30, 2004 Colorado Department of Personnel & Administration Division of Finance and Procurement Office of the State Controller Leslie M. Shenefelt,

More information

Health Reform: The Cost of Failure and the Implications of Success

Health Reform: The Cost of Failure and the Implications of Success Health Reform: The Cost of Failure and the Implications of Success Bowen Garrett John Holahan June 17, 2010 National Association for Business Economics www.healthpolicycenter.org The Affordable Care Act

More information

Insurance Coverage Provisions of the Affordable Care Act CBO s March 2015 Baseline

Insurance Coverage Provisions of the Affordable Care Act CBO s March 2015 Baseline Insurance Coverage Provisions of the Affordable Care Act CBO s March 2015 Baseline Table 1. Direct Spending and Revenue Effects of the Insurance Coverage Provisions of the Affordable Care Act Table 2.

More information

Social Studies Study Guide

Social Studies Study Guide Social Studies Study Guide Answer Key Unit 5: Federal Government Lesson 1 Why Do We Need a Government? 1. What do we call people who study governments? Political scientists 2. Political scientists ask

More information

January 27, 2010. Honorable Paul Ryan Ranking Member Committee on the Budget U.S. House of Representatives Washington, DC 20515.

January 27, 2010. Honorable Paul Ryan Ranking Member Committee on the Budget U.S. House of Representatives Washington, DC 20515. CONGRESSIONAL BUDGET OFFICE U.S. Congress Washington, DC 20515 Douglas W. Elmendorf, Director January 27, 2010 Honorable Paul Ryan Ranking Member Committee on the Budget U.S. House of Representatives Washington,

More information

Statement of Robert D. Reischauer Director Congressional Budget Office. before the Committee on Finance United States Senate.

Statement of Robert D. Reischauer Director Congressional Budget Office. before the Committee on Finance United States Senate. Statement of Robert D. Reischauer Director Congressional Budget Office before the Committee on Finance United States Senate March 9,1989 NOTICE This statement is not available for public release until

More information

Understanding the Chicago Public Schools Budget. A Citizen s Guide

Understanding the Chicago Public Schools Budget. A Citizen s Guide Understanding the Chicago Public Schools Budget A Citizen s Guide Our $6.6 billion budget and you This guide is designed to introduce you to the Chicago Public Schools (CPS) budget and help you understand

More information

Tax System Challenges in the 21 st Century

Tax System Challenges in the 21 st Century Tax System Challenges in the 21 st Century American taxpayers paid about $1.9 trillion in combined federal taxes, including income, payroll, and excise taxes, in fiscal year 2004. These taxes, along with

More information

Tax Subsidies for Private Health Insurance

Tax Subsidies for Private Health Insurance Tax Subsidies for Private Health Insurance Matthew Rae, Gary Claxton, Nirmita Panchal, Larry Levitt The federal and state tax systems provide significant financial benefits for people with private health

More information

Treasurer of State OVERVIEW

Treasurer of State OVERVIEW Treasurer of State OVERVIEW The Treasurer of State collects, invests, and protects state funds. The Treasurer s Office functions as a custodian of the public s money, manager of the state s investment

More information

Budgeting and debt advice handbook for residents

Budgeting and debt advice handbook for residents Budgeting and debt advice handbook for residents Step-by-step guide Contents Introduction...................... 3 Income maximisation List your income Can you increase your income? Income..........................

More information

Mandatory Spending Since 1962

Mandatory Spending Since 1962 Mindy R. Levit Specialist in Public Finance D. Andrew Austin Analyst in Economic Policy Jeffrey M. Stupak Research Assistant March 18, 2015 Congressional Research Service 7-5700 www.crs.gov RL33074 Summary

More information

AGENCY BUDGET REQUESTS and REVENUE ESTIMATES

AGENCY BUDGET REQUESTS and REVENUE ESTIMATES AGENCY BUDGET REQUESTS and REVENUE ESTIMATES FY2016 FY2017 STATE OF WISCONSIN Division of Executive Budget and Finance Department of Administration November 20, 2014 SCOTT WALKER GOVERNOR MIKE HUEBSCH

More information

Composition of Federal Spending

Composition of Federal Spending The Honorable David M. Walker Comptroller General of the United States U.S. Government Accountability Office February 10, 2005 2 Composition of Federal Spending 1964 1984 2004* Defense Net interest *Current

More information

Addressing Fiscal Sustainability and Fixing the Social Security System:

Addressing Fiscal Sustainability and Fixing the Social Security System: Addressing Fiscal Sustainability and Fixing the Social Security System: Two Challenges Facing the Nation The Honorable David M. Walker Comptroller General of the United States AARP Board of Directors Annual

More information

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education POLICY BRIEF Visit us at: www.tiaa-crefinstitute.org. September 2004 The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education The 2004 Social

More information

Personal Saving Rate Has Declined

Personal Saving Rate Has Declined Personal Saving Rate Has Declined Percentage of disposable personal income 12. 1. 8. 6. 4. 2.. 196 1965 197 1975 198 1985 199 1995 4 Source: Bureau of Economic Analysis, Department of Commerce. 1 Estimated

More information

Lesson 10 - The Circular Flow of Economic Activity

Lesson 10 - The Circular Flow of Economic Activity Lesson 0 - The Circular Flow of Economic Activity INTRODUCTION Economics The circular flow of economic activity is a simplified macroeconomic model of the basic economic relationships in a market economy.

More information

INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015

INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015 INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015 Chairmen Eichelberger and Blake, members of the committee, thank you for the opportunity

More information

West Virginia Children and Families Funding Study

West Virginia Children and Families Funding Study West Virginia Children and Families Funding Study Update and Report on Nine Year Trends in Public Expenditures FY 1999 through FY 2007 June, 2009 Supported By: Division of Criminal Justice Services / Department

More information

Facts and Figures on the Middle-Class Squeeze in Idaho

Facts and Figures on the Middle-Class Squeeze in Idaho Facts and Figures on the Middle-Class Squeeze in Idaho For hard-working, middle-class families all over the country, life during the Bush presidency has grown less affordable and less secure. President

More information

CHAPTER 169. MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING

CHAPTER 169. MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING CURRENT THROUGH P.L. 110-190, APPROVED 2/28/2008 TITLE 10. ARMED FORCES SUBTITLE A. GENERAL MILITARY LAW PART IV. SERVICE, SUPPLY, AND PROCUREMENT CHAPTER 169. MILITARY CONSTRUCTION AND MILITARY FAMILY

More information

United States Government Required Supplementary Information (Unaudited) For the Years Ended September 30, 2014, and 2013

United States Government Required Supplementary Information (Unaudited) For the Years Ended September 30, 2014, and 2013 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 151 United States Government Required Supplementary Information (Unaudited) For the Years Ended September 30, 2014, and 2013 Fiscal Projections for the U.S.

More information

o The bipartisan Joint Committee on Taxation says that eliminating the tax would reduce family premiums. 2

o The bipartisan Joint Committee on Taxation says that eliminating the tax would reduce family premiums. 2 The Health Insurance Tax Will Hurt. The new health insurance tax will increase the cost of health care benefits, harming those who need help the most: small businesses, families who work for a small business

More information

Debt Limit and Ongoing Fiscal Debate: County Risks and Opportunities. January 2013

Debt Limit and Ongoing Fiscal Debate: County Risks and Opportunities. January 2013 Debt Limit and Ongoing Fiscal Debate: County Risks and Opportunities January 2013 www.naco.org 1 Debt Limit and Ongoing Fiscal Debate: County Risks and Opportunities Presentation Overview Why Counties

More information

THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL*

THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL* Chapter 8 THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL* The Classical Model: A Preview Topic: Real Variables 1) Real variables A) are those that determine the cost of living. B) are those that determine

More information

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. An Update to the Budget and Economic Outlook: 2015 to 2025. Defense 2.7 3.3 2.2 2.

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. An Update to the Budget and Economic Outlook: 2015 to 2025. Defense 2.7 3.3 2.2 2. CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE An Update to the Budget and Economic Outlook: 2015 to 2025 Percentage of GDP Major Health Care Programs Mandatory Spending Social Security Other

More information

Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics.

Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics. 1 Module C: Fiscal Policy and Budget Deficits Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics. Fiscal and monetary policies are the two major tools

More information

Politics, Surpluses, Deficits, and Debt

Politics, Surpluses, Deficits, and Debt Defining Surpluses and Debt Politics, Surpluses,, and Debt Chapter 11 A surplus is an excess of revenues over payments. A deficit is a shortfall of revenues relative to payments. 2 Introduction After having

More information

Keys to Your Financial Future

Keys to Your Financial Future Section 1: Name: Date: Section 2: Circle your answer to each of the following questions. 1. Vision and goals have hing to do with managing your money. 2. Contingency planning is thinking about what could

More information

THE MARKET OF FACTORS OF PRODUCTION

THE MARKET OF FACTORS OF PRODUCTION THE MARKET OF FACTORS OF PRODUCTION The basis of the economy is the production of goods and services. Economics distinguishes between 3 factors of production which are used in the production of goods:

More information

U.S. Government Receivables and Debt Collection Activities of Federal Agencies

U.S. Government Receivables and Debt Collection Activities of Federal Agencies FISCAL YEAR 2013 REPORT TO THE CONGRESS U.S. Government Receivables and Debt Collection Activities of Federal Agencies Department of the Treasury July 2014 department of the treasury washington, dc office

More information

Hawaii Individual Income Tax Statistics

Hawaii Individual Income Tax Statistics Hawaii Individual Income Tax Statistics Tax Year 2012 Department of Taxation State of Hawaii Hawaii Individual Income Tax Statistics Tax Year 2012 Department of Taxation State of Hawaii November 2014 Prepared

More information

1. What types of organisation do you fund? 2. Do you give grants for individual children and young people?

1. What types of organisation do you fund? 2. Do you give grants for individual children and young people? Frequently Asked Questions (FAQs) Who can apply for a grant? 1. What types of organisation do you fund? 2. Do you give grants for individual children and young people? 3. Some of the young people our organisation

More information

June 6, 2014. Honorable Elizabeth Warren United States Senate Washington, DC 20510. Dear Senator:

June 6, 2014. Honorable Elizabeth Warren United States Senate Washington, DC 20510. Dear Senator: CONGRESSIONAL BUDGET OFFICE U.S. Congress Washington, DC 20515 Douglas W. Elmendorf, Director June 6, 2014 Honorable Elizabeth Warren United States Senate Washington, DC 20510 Dear Senator: As you requested,

More information

Oregon has been one of the nation s leaders in ensuring that

Oregon has been one of the nation s leaders in ensuring that Health Reform: New Opportunities For Oregon To Invest in Home- and Community-Based Services Oregon has been one of the nation s leaders in ensuring that seniors and people with disabilities are able to

More information

5 Year Financial Trend Report. FINANCIAL CONDITION ANALYSIS For the Five Year Period of FY2007-2008 through FY2011-2012

5 Year Financial Trend Report. FINANCIAL CONDITION ANALYSIS For the Five Year Period of FY2007-2008 through FY2011-2012 5 Year Financial Trend Report FINANCIAL CONDITION ANALYSIS For the Five Year Period of FY2007-2008 through FY2011-2012 Report Date: January 2013 Financial Condition Analysis Page 0 INTRODUCTION Financial

More information

Laying the Foundation for Inclusive Prosperity

Laying the Foundation for Inclusive Prosperity Laying the Foundation for Inclusive Prosperity Center for American Progress By Harry Stein and Alexandra Thornton INTRODUCTION The central challenge of our time is building an economy that works for everyone,

More information

An Examination of Student Loan Interest Rate Proposals in the 113 th Congress

An Examination of Student Loan Interest Rate Proposals in the 113 th Congress An Examination of Student Loan Interest Rate Proposals in the 113 th Congress David P. Smole Specialist in Education Policy June 5, 2013 CRS Report for Congress Prepared for Members and Committees of Congress

More information

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. The Distribution of Household Income and Federal Taxes, 2008 and 2009

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. The Distribution of Household Income and Federal Taxes, 2008 and 2009 CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE Percent 70 The Distribution of Household Income and Federal Taxes, 2008 and 2009 60 50 Before-Tax Income Federal Taxes Top 1 Percent 40 30 20 81st

More information