Bureaucracy & Financing
Bureaucracy Bureaucracy: Large, complex administrative structure which handles everyday business of the federal government Hierarchical authority Job Specialization Formalized Rules
Executive Departments Each Department headed by a Secretary Cabinet Informal advisory board to the President Traditionally made up of heads of 15 executive departments Departments of State, Justice, Defense, Education, Treasury, etc.
Executive Office of the President The EOP is staffed by the President’s most trusted advisors White House Office “Nerve Center” Chief of Staff, Press Secretary, assistants to President National Security Council Advises President on domestic, foreign, and military issues that relate to security VP, Secretary of State, Secretary of Defense, head of CIA & FBI
Independent Agencies Independent Agencies – Created outside the Executive branch Do not fit well within departments Independent Executive Agencies NASA, EPA, etc. Independent Regulatory Commissions The Fed, etc. Government Corporations FDIC, US Postal Service, etc.
Financing the Government
Types of Taxes Progressive Taxes Tax increases based on an individual’s ability to pay Corporate Taxes – pay according to its profit for year Income Taxes – #1 source of revenue Tax Return – declaration of income & deductions - IRS by April 15th
Types of Taxes Regressive Taxes Taxes levied at a flat rate without regard to the level of a taxpayer’s income or ability to pay Sales tax – 8.25%
Types of Taxes Excise Taxes on the production, sale, or consumption of specific goods “Luxury” or “Sin” taxes Airline tickets, tires, firearms, tobacco, beer, gambling
Types of Taxes Estate taxes (Death taxes) Paid according to a person’s wealth, land, estate at their death Gift taxes Tax gifts over $12,000 a year (to keep people from giving away estate)
Federal Spending Each branch within the government receives a portion Executive Departments spend the most President submits a budget to Congress each year for approval Must be approved by whole Congress