Macro- Exam 2 (government)

Federal, state, local

Three levels of government

Budget

Plan for expenditures (outlays) and tax collections

Balanced budget

Gov. expenditures = tax revenues

Budget surplus

Tax revenues exceed gov. expenditures

Budget deficit

Gov. expenditures exceed tax revenues

$2.8 trillion

Federal budget deficit (-)

Depends on how much federal gov. spends (and collects taxes)

How high will the deficit go in 2022? 2023?

Federal budget deficit

___ is calculated yearly

National debt

Sum of all past budget deficits

$30 trillion

Current national debt

Statutary debit limit

Ceiling caps the borrowing authority of federal government

1. Social Security (32%)
2. Health (30%)
3. National Defense (16%)
4. Social Programs/Income Sec. (15%)
5. Net Interest on Debt (7%)

Federal budget outlays

Social security

Entitlement programs (built into federal budget) are not needs tested or need based

Health

Medicad (Needs based)
ACA (Affordable Care Act)

National defense

Hardware and Base etc.

Social Programs

TANF (Temporarily aid for needy families)

Net Interest on debt

Allocated to pay national debt

1. Individual Income Taxes
2. Social Insurance Taxes
3. Corporate Income Taxes
4. Excise, Estate, Customs

Federal Tax Receipts (major outlay/source)

Individual income taxes

The more you make, the more they take

Social insurance

Social security taxes, payroll taxes, FICA

FICA

Federal, insurance, contributions, act

Excise

Federal sales taxes on specific items

Estate

Large home/property tax

Federal reserve deposit

Banks