GOV vocab pt 2 (2)

Budget

A plan that shows how the government expects to spend money and how it expects to collect money in a given year

Revenue

Money the federal government collects mainly through taxes

Income Tax

A tax on money earned by individuals and businesses

16th Amendment

Amendment that gave Congress the power to collect income taxes

Social Insurance Taxes

Payroll taxes that fund Social Security and Medicare

Tax Expenditures

Government spending through tax deductions credits or exemptions

Social Security Act

Law that created Social Security to provide retirement disability and unemployment benefits

Medicare

Federal health insurance program mainly for people age 65 and older

Uncontrollable Expenditures

Spending required by law that Congress cannot easily change

Entitlements

Government programs that guarantee benefits to those who qualify

Office of Management and Budget

Executive office that helps the president prepare the federal budget

Congressional Budget Office

Nonpartisan office that analyzes budget proposals and their effects

General Accounting Office

Congressional agency that audits government spending now called the Government Accountability Office

Congressional Budget and Impoundment Control Act of 1974

Law that gave Congress more control over the budget and created the CBO

Budget Resolution

Congressional plan that sets overall spending limits but is not a law

Reconciliation

Process used by Congress to adjust spending and taxes to match the budget resolution

Authorization Bill

Law that creates or continues a government program and sets spending limits

Appropriations Bill

Law that provides actual funding for government programs

Continuing Resolutions

Temporary laws that keep the government funded when a budget is not passed

Expenditures

The actual money the government spends on programs, services, and benefits.