JEOPARDY #4 Ch

POT LUCKWon’t Budge-it! A Taxing Effort More Budgetary Concerns Acting with Resolve! Number Nuisance

POT LUCK Term for the practice of providing a spending cut or tax increase in order to fund any additional programs

POT LUCK What is “PAYGO” or “pay-as- you-go”?

POT LUCK Pollock v. Farmer’s Loan and Trust Company (1895)

POT LUCK What is the Supreme Court decision which declared income tax unconstitutional?

POT LUCK Oft proposed in response to the gargantuan deficits of the 1980s and early 1990s, it would require a congressional SUPERMAJORITY to authorize deficit spending

POT LUCK What is the balanced budget amendment?

POT LUCK As a result of this, beginning in 1985, the government no longer received a larger share of income when inflation pushed incomes into higher brackets while the tax rates stayed the same

POT LUCK What is INDEXING (taxes were indexed to the cost of living)?

POT LUCK It’s Congress’s eyes and ears – it audits, monitors, and evaluates what agencies are doing with their budgets

POT LUCK What is the GAO (General Accounting Office)

Won’t Budge-It! One is the amount by which spending exceeds revenues in a single yearOne is the amount by which spending exceeds revenues in a single year 2.The other is the total owed by the nationThe other is the total owed by the nation

Won’t Budge-It! What are the federal DEFICIT and the national DEBT?

Won’t Budge-It! It’s the executive agency responsible for preparing the president’s budget proposal

Won’t Budge-It! What is the OMB – Office of Management and Budget?

Won’t Budge-It! Term which best describes the fact that the best indicator of this year’s budget is last year’s budget plus a little more

Won’t Budge-It! What is INCREMENTALISM?

Won’t Budge-It! It’s how the federal government borrows money from citizens

Won’t Budge-It! What are BONDS?

Won’t Budge-It! The first are uncontrollable expenditures -- spending programs based on formulas, and the second are programs with controllable expenditures

Won’t Budge-It! What are 1.ENTITLEMENTS (or NONDISCRETIONARY spending) andENTITLEMENTS (or NONDISCRETIONARY spending) and 2. DISCRETIONARY spending? DISCRETIONARY spending?

A Taxing Effort It’s the source of most federal income

A Taxing Effort What is personal income tax?

A Taxing Effort It’s where all taxing and spending measures must begin

A Taxing Effort What is the House of Representatives?

A Taxing Effort The one taxes those with more income at a higher rate 2. while the other requires those with less to pay a bigger percentage of their income in taxes

A Taxing Effort What are 1.Progressive taxes &Progressive taxes & 2.Regressive taxes?Regressive taxes?

A Taxing Effort Often hailed as the “fair” tax because it taxes everyone at the same rate, it is actually regressive because it takes a greater percentage of total consumption from lower income people

A Taxing Effort What is a “flat” tax?

A Taxing Effort Contrary to popular belief, it is not tax loopholes, but these “revenue losses attributable to provisions of the federal tax laws which allow special exemption, exclusion, or deduction” which cost the federal government a substantial sum – the difference between what the government actually collects and what it would have collected without special exemptions

A Taxing Effort What are TAX EXPENDITURES?

More Budgetary Concerns The rise of the national security state and the rise of the social service state

More Budgetary Concerns What are the two conditions most closely associated with government growth in America?

More Budgetary Concerns Established by the Budget and Impoundment Control Act of 1974, it checks the OMB’s facts and figures

More Budgetary Concerns What is the CBO – Congressional Budget Office?

More Budgetary Concerns It’s the bill which draws the bottom line on the budget; it’s the means by which Congress sets limits on expenditures based on revenue projections

More Budgetary Concerns What is a BUDGET RESOLUTION?

More Budgetary Concerns It’s the congressional process through which program authorizations are revised to achieve required savings; it usually also includes tax or other revenue adjustments

More Budgetary Concerns What is budget RECONCILIATION?

More Budgetary Concerns The one is how Congress establishes, continues, or changes a discretionary program or an entitlement – specifying program goals and maximum expenditures for discretionary programs; 2. The other is an act of Congress that actually funds programs established by the limits set above; it usually covers one year.

More Budgetary Concerns What are 1.Authorization Bills &Authorization Bills & 2.Appropriations?Appropriations?

Acting with Resolve! Interim measure which Congress passes to fund the government when it fails to meet its own budgetary timetable

Acting with Resolve! What is a CONTINUING RESOLUTION?

Acting with Resolve! Domestic SpendingDomestic Spending 2.Defense SpendingDefense Spending 3.International SpendingInternational Spending

Acting with Resolve! What are 3 key categories of DISCRETIONARY SPENDING?

Acting with Resolve! The two Congressional committees that write the tax codes, subject to approval by Congress as a whole

Acting with Resolve! What are the House Ways and Means Committee & the Senate Finance Committee

Acting with Resolve! The Balanced Budget and Emergency Deficit Control Act (Gramm-Rudman-Hollings) was an attempt at fiscal responsibility which mandated maximum allowable deficit levels and directed the president to order these if Congress failed to meet deficit goals

Acting with Resolve! What are automatic across-the- board spending cuts called SEQUESTRATIONS?

Acting with Resolve! Prior to this, presidents played a very limited role or none at all in proposing the budget. The various agencies of the executive branch basically lobbied Congress with their own budget requests.

Acting with Resolve! What is the Budget and Accounting Act of 1921?

Number Nuisance In 1913, this amendment authorized Congress to levy taxes on personal income

Number Nuisance What is the 16 th Amendment?

Number Nuisance Portion of the federal budget which is nondiscretionary

Number Nuisance What is 2/3?

Number Nuisance Year Congress passed the Social Security Act, intended to provide a minimal level of sustenance to older Americans, thus saving them from poverty

Number Nuisance What is 1935?

Number Nuisance Disability insurance became a part of Social Security in the 1950s. Medicare added hospitalization insurance for the elderly in this year.

Number Nuisance What is 1965?

Number Nuisance These committees and their subcommittees in each house and decide HOW MUCH TO SPEND; they hold hearings on specific agency requests

Number Nuisance What are the HOUSE and SENATE APPROPRIATIONS COMMITEES?