usgov chapter 7

bureaucracy

any organization, either in government or the private sectors, that has a clear formal structure, a division of labor, and a set of rules and procedures by which it operates

bureaucrats

civilians who carry out the work of the federal government

civil service

made up of civilians who carry out the work of the federal government

spoils system

rewards system where those who supported the president get a position in civil service

independent agencies

 government agencies that operate separately from the executive departments

independent executive agencies

 to oversee and manage a specific aspect of the federal government

independent regulatory commissions

to regulate some aspect of the economy

bipartisan

 includes members from both major political parties

government corporations

organized and run like businesses but are owned in whole or in part by the federal government

income tax

tax on a person’s or corporation’s income

progressive tax

 tax whose rates increase as the amount that is subject to taxation increases

payroll tax

: money that is withheld from a person’s paycheck by his/her employer

regressive tax

tax that has a greater impact on lower-income earners than on upper-income earners

proportional tax

tax in which the tax rate is the same for all taxpayers regardless of income

bond

 financial instrument by which a borrower agrees to pay back borrowed money plus interest

federal debt

the total sum of money that the federal government has borrowed and not yet paid

mandatory spending

required by law and not subject to annual budget process

discretionary spending

 spending subject to the annual budget process

fiscal policy

 creating the federal budget and tax laws

monetary policy

 when the government alters the amount of money in circulation and interest rates.