raising money types of taxes managing the country’s money

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Paying for government chapter 12

Paying for governmentchapter 12Raising MoneyTypes of TaxesManaging the Countrys MoneyManaging the Countrys MoneyChapter 12Section 3P305-308Key TermsBalanced Budget revenues = expenditures (income) = (outgoing)

Surplus an excess of money Deficit shortage of money

Audit careful examination by accountants of all revenues and expenditures

Every level of government has a tax collection agency

State Tax AgenciesState income taxesInheritance taxes Local Tax AgenciesLocal property Collected monies go to different TreasuriesFederal LevelState & Local LevelU.S. Department of Treasury Authorized by CongressSpends federal tax dollarsComptrollerAuthorized by:State LegislatureCity CouncilActs as watchdog of TreasuryResponsible for ensuring public funds spent as allocated

Spending Public MoneyGovernments collect money to pay for goods and services citizens wantBUDGET lists the amount and sources of:Expected Revenue money your going to make/getMoney incomeProposed expenditures- money your going to spendMoney outgoing

Planning Government Spending

How to spend money = lots of political debate

8OMB & Preparing the Federal Budget(B)O.M.B.2011 Presidential Budget

$3.8 trillion budget proposal for fiscal year 2011 includes billions to put people back to work and imposes new fees on some of the nation's largest banks

Congress and the Budget

The National Debt Balancing the Budget Balanced Budget revenue equals expenditures money collected EQUALS money spent Surplus excess of money money collected GREATER money spent

Deficit shortage of money money collected LESS THAN money spent

If there is a deficit then government must borrow money to pay for difference between income and expenses Government must pay interest on money it borrows

National Debt deficit + interest on borrowed money

Deficit

U.S. National Debt

There is no constitutional limit on the size of the national debt, congress establishes a limit, but can raise the limit through a vote

AuditsAudit - examination by an accountant of a governments income and expenditureThe U.S. Government Accountability Office performs audits on most federal expenditures

http://www.usdebtclock.org/