Chapter 16 & 17 Highlights

Chapter 16 Financing Govt  Power to Tax - Article I  Income Tax – Progressive Tax, the more you make the greater % they take  Sale Tax – Regressive or Flat tax  Payroll Taxes – Social Security – Employer match  Excise Tax – Indirect Tax..producer paid initially

 Sin Tax – non-revenue motivated  Public Deficit  Public Debt  Entitlements – Social Security, Unemployment, Medicare

Chapter 17 Foreign Policy  Isolationism – American ideology until WWII  Foreign Policy – can be diplomatic, military and commercial.  Right of Legation – to send and receive ambassadors  Diplomatic Immunity  Secretary of State, Defense

 Cold War (1946 – 1991)  START I and II – Strategic Arms Reduction Treaties 1991 & 1993  Draft – Selective Service  Monroe Doctrine – 1823  Roosevelt Corollary  Truman Doctrine  Containment

 Foreign Aid  Regional Security Alliances – NATO, SEATO  United Nations  Security Council – 15 (5 permanent members with veto power)