Date: March 20, 2013 Topic: Economic Policy – Fiscal Policy Aim: How does fiscal policy impact the United States? Do Now: Multiple Choice Questions.
Types of Committees Standing Committees - permanent panel with full legislative functions and oversight responsibilities Subcommittees – formed to tackle very specific tasks within the jurisdiction of the full committees Select or Special Committees - groups appointed for a limited purpose and limited duration Joint Committees - includes members of both chambers to conduct studies or perform housekeeping tasks Conference Committee - includes members of House & Senate to work out differences between similar bills
Past Economic Policies Laissez-Faire – “hands off” “leave it alone” Keynesian Economics – the government should manage the economy.
National Debt vs. The Deficit. National Debt – all the money that the United States owes. Deficit – the amount overspent in a year. THE DEBT CLOCK
Fiscal Policy Fiscal Policy – policies where changes are made in the governments methods of raising money and spending it – taxing and spending policies. Where does the money come from? 1.) Federal Income Taxes a.) largest single source of revenue – 45% of the national governments total revenues. b.) Progressive Tax – the higher the income, the higher the tax rate. c.) Corporations pay income taxes too. d.) Complex tax code – simplify it! 2.) Social Insurance TaxesTaxes Employers employ these taxes to their employees who then become eligible when they get older. 3.) Borrowing The government often borrows money to fund its own taxpayers. Deficit Spending – when the government spends more money than it takes in within a fiscal year
4.) Other Taxes A.) Excise Taxes – levied on specific goods and services like alcohol and tobacco. Excise taxes are regressive taxes – are the same for everyone. B.) Estate Taxes – money and property that are inherited when an individual dies. C.) Customs, duties, and tariffs levied on goods imported to the United States.