CH. 14 Congress, Pres and the BudgetMoney money monayMonay!

Essential Question

Who bears the burdens of paying for the government?

Who receives the benefits?

Budgeting

Every year, Congress and President have to set up a budget (Constitution)

Budget: policy document allocating burdens(taxes) with benefits(expenditures)“Series of goals with price tags attached”

No more money

Deficit: when the government spends(expenditure) more than they receive(revenue)Expenditure: Gov’t spending

Revenue: Financial resource of gov’tIncome tax and Social Security tax are the

largest revenues.

How do we get money?

Income tax: shares of individual and corporate wages collected by governmentMade legal by the 16th Amendment (1913)

Originally income tax appeared during the Civil WarPollock v. Farmer’s Loan and Trust Co.

(1895) declared that unconstitutional

Income Tax

In general is a progressive taxThe more you make, the more you pay.

Some people want a “flat” taxEx: All people pay a 10% tax

Others suggest a national sales tax.Taxes on goods you purchase.