16. Financing the Government.

Taxes.

Nontax Revenues and Borrowing.

Spending and the Budget.

progressive tax

progressive taxhigher one’s income, the higher the tax

tax return

tax returna declaration of that income and of the exemptions

and deductions he or she claims

payroll tax

payroll taxamounts owed by employees are withheld from

their paychecks

regressive tax

regressive taxtaxes levied at a flat rate, without regard to the

level of a taxpayer’s income or his or her ability to pay them

excise tax

excise taxtax laid on the manufacture, sale, or consumption

of goods and/or the performance of services

estate tax

estate taxlevy imposed on the assets of one who dies

gift tax

gift taxone imposed on the making of a gift by a living

person

customs duty

customs dutytaxes laid on goods brought into the United States

from abroad

interest

interesta charge for borrowed money, generally a

percentage of the amount borrowed

deficit

deficitthe yearly shortfall between income and outgo; and

it borrowed heavily to make up the difference

surplus

surplusmore income than outgo

public debt

public debtthe government’s total outstanding indebtedness

entitlement

entitlementbenefits that federal law says must be paid to all

those who meet the eligibility requirements

controllable spending

controllable spending

Congress and the President can decide each year just how much will be spent on many of the things

that the government does

uncontrollable spending

uncontrollable spending

nearly 80% of all federal spending(paying interest on public debt)

continuing resolution

continuing resolution

when signed by the President, this allows the affected agencies to continue to function on the

basis of the previous year’s appropriations

Financing the Government.

Interpreting Political Cartoons.

How does the Federal Government Draw Revenue?

The Federal Government’s Income (in billions of dollars)

Progressive Income Tax.

U.S. Department of the Interior.

Don’t Borrow Against the Future.

U.S. Postal Service.

Voices on Government.

Government Borrowing, 1940-2005.

Budgets in Crisis.

Food Stamp Program.

Entitlements, Interest on Public Debt, and Defense.

Federal Spending (in billions of dollars)

Federal Spending (in billions of dollars)

Interpreting Political Cartoons.

Analyzing Political Cartoons.