U.S. Financial Literacy (Congress)

Income tax

shares of individual wages and corporate revenues collected by the government

Revenues

the money coming into the treasury from many sources

Budget resolution

a resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs

Fiscal year

the 12-month period used by the government for budgeting, accounting, and financial reporting

Deficit

an excess of federal expenditures over federal revenues

National debt

all the money borrowed by the federal government over the years + still outstanding

Expenditures

government spending

Entitlements

the way the government spends money

16th amendment

the power of the federal government to collect income tax

Budget

a policy document allocating budget burdens (taxes) and benefits (expenditures)

Identify the two conditions that have contributed the most to the federal government's growth in size and spending.

1. military

2. Social Programs

Explain the progressive tax system.

The more income someone has, the higher percentage of tax rate there is.

Prior to 1913, what type of tax provided the most revenue for the federal government?

tariffs and excise taxes

Social Security in a pension type trust fund. What two entities pay into social security?

1. employees

2. Employers

What was the original intent of social security?

to aid poor and elderly people

Associate the president with S.S. & associate the president with the initiation of Medicare.

Social Security: Franklin D. Roosevelt

Medicare: Lyndon B. Johnson

What branch of government was required to become part of the budget process from the 1921 Budget and Accounting Act?

executive

Explain the 1974 Budget & Impoundment Control Act

a law passed by Congress (legislative branch) to take back control of the federal budget process

What is the purpose of a continuing resolution?

to prevent government shutdown

What are the two largest entitlement programs?

1. Social Security

2. Medicare

When does the federal fiscal year begin and end?

begins October 1 and ends in September 30