Chapter 14: Taxes and Government Spending Section 3

Slides:



Advertisements
Similar presentations
Unit 7 Macroeconomics: Taxes, Fiscal, and Monetary Policies Chapters 14.3 Economics Mr. Biggs.
Advertisements

CHAPTER 10 GOVERNMENT SPENDING.
Ch. 10 Government Spending. Section 1 Government Spending in Perspective Total government expenditures at all levels was almost $2.9 trillion in 2001-
Objectives Identify the sources of the government’s authority to tax.
Taxes and Government Spending
Chapter 14: Taxes and Government Spending Section 1
What Are Taxes? How are taxes used to fund government programs?
Today’s Schedule – 11/21 Government Spending PPT Presidential Budget Analysis HW – Read 15.1/15.2.
El Dorado High School Spring 2015 Taxe $ and Government $pending.
The Federal Budget and Social Security.  Key Terms  Budget  A financial plan for the use of money, personnel, and property.  Balanced Budget  When.
Copyright 2009 Pearson Education, Inc., Publishing as Longman Longman PoliticalScienceInteractive Magleby & Light Government by the People Chapter 19 Making.
CHAPTER 14 Taxes and Government Spending. STEFF CYBULSKI LIZ DILLON What are taxes?
Government spending Running the US Government cost this country around $2 Trillions dollars a year. Most of that money comes from taxes and Congress determines.
Government Finances Chapter 25. The Federal Government Chapter 25 Section 1.
The Tax System Chapter 12. What Are Taxes and When Do You Have to Pay Them? Taxes are payments to local, state or national governments. They are the government’s.
Chapter 14, Taxes and Gov’t Spending Examining Fiscal Policy.
Taxes and Government Spending
Taxes. What are Taxes? Taxes are payments people are required to pay to local, state and national governments. Taxes are used to pay for services provided.
Taxes & Government Spending Chapter 14 Section 3 Federal Spending.
Chapter 3.4: Government Income Redistribution Programs
Chapter 14, Taxes and Gov’t Spending Examining Fiscal Policy.
Why do we have programs like food stamps and Medicaid? Are they necessary? Why or why not? Call to Order.
Chapter 14.  The Government’s Authority to Tax  Purpose of Taxation  The Power to Tax ▪ 1 st Power given to Congress  Limits on the Power to Tax ▪
Chapter 14SectionMain Menu Federal Spending 14.3 What is the difference between mandatory and discretionary spending? What are some major entitlement programs?
Monetary Policy Monetary Policy – the process by which the government controls the supply of money in circulation and the supply of credit through the.
Chapter 14: Taxes and Government Spending Opener
Chapter 25.1 The Federal Government. Preparing the Budget Each year, the president and Congress create the federal budget, which is a plan for how the.
January 6, Twenty-Ten.  What are the restrictions on a tax?  What kind of tax is the Federal Income Tax?  What is an excise tax? Give an example of.
Taxes And Spending “In this world, nothing is certain but death and taxes” -Benjamin Franklin 1.
Providing a Safety Net. The Poverty Problem The wealth has spread unevenly throughout society as the free market has generated wealth. Some people are.
Chapter 14: Taxes and Government Spending Section 2
Bell Ringer “In this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin “The only difference between death and taxes.
Chapter 16: Financing Government Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 16, Section 3 Objectives 1.Identify the key elements of.
Chapter 3 Section 4.
American Government Unit Chapter 16
Government and Taxes Chapter 14. Funding Government Programs Citizens of the United States authorize the government, through the Constitution and elected.
Chapter 3: American Free Enterprise Section 4. Slide 2 Copyright © Pearson Education, Inc.Chapter 3, Section 4 Objectives 1.Explain the U.S. political.
Chapter 17: Domestic Policy Part II (pp ).
Slide 1 Copyright © Pearson Education, Inc.Chapter 3, Section 4 Essential Question What role should government play in a free market economy?
Chapter 3: American Free Enterprise Section 4. Slide 2 Copyright © Pearson Education, Inc.Chapter 3, Section 4 Objectives 1.Explain the U.S. political.
What is Economics?. The study of choice under the conditions of scarcity. Microeconomics-study of the behavior and decision making by small units such.
Today’s Schedule – 11/20 PPT – Federal Spending – Fiscal Policy Filing Taxes HW – Read 15.1/15.2.
BELLWORK Write down 3 Current Events from the Week-In-Rap.
Taxes and Government Spending Chapter 14. What are taxes? »A required payment to a local, state, or federal government »Becomes government revenue.
Chapter 14 Taxes and Government Spending. Section 1: What are Taxes? Tax: required payment to a local, state, or national government What is tax money.
Chapter 10 – Government Spending. Section One – The Economics of Government Spending I.Government Spending in Perspective i. Government called on to do.
Chapter 10 Sections 2,3 & 4 By: Colette Spencer. Federal government has two kinds of spending: 1) goods and services Tanks, planes, space shuttles Office.
Chapter 14 Jeopardy. Tax based on a person’s earnings (taxes taken out of your pay check):
Chapter 14SectionMain Menu Taxes –Primary way that the government collects money. –Without revenue, or income from taxes, government would not be able.
CHAPTER 22 TAXES AND GOV’T SPENDING. Federal Gov’t We authorize the federal government, through the Constitution and our elected representatives in Congress,
Presentation Pro © 2001 by Prentice Hall, Inc. Economics: Principles in Action C H A P T E R 14 Taxes and Government Spending.
GOVERNMENT FINANCE (TAXES). Essential Question : – How does the Federal Government accumulate revenue (income) and determine how to spend it?
Chapter 14: Taxes and Government Spending Section 4.
Chapter 14 Section 3.
Taxes & Government Spending Chapter 14 Section 3 Federal Spending.
Chapter 22, Opener Where do your taxes go? Income Taxes and Government Spending.
Federal Expenditures The programs & services the federal government funds are divided into two categories. Mandatory spending—or spending that is required.
Chapter 16: Financing Government Section 3
Chapter 11 – Government in the Economy
Introduction to Economics Johnstown High School Mr. Cox
What are Taxes? Chapter 14 Section 1
Economics: Principles in Action
Bell Ringer “In this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin “The only difference between.
Chapter 14: Taxes and Government Spending Section 1
Bell Ringer “In this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin “The only difference between.
Chapter 14.3 Federal Spending
Chapter 16: Financing Government Section 3
10-2: Entitlement Programs
Taxes and Government Spending
Chapter 14-3: Taxes and Government Spending
Presentation transcript:

Chapter 14: Taxes and Government Spending Section 3

Objectives Distinguish between mandatory and discretionary spending. Describe the major entitlement programs. Identify categories of discretionary spending. Explain the impact of federal aid to state and local governments.

Key Terms mandatory spending: spending that Congress is required by existing law to do discretionary spending: spending about which Congress is free to make choices entitlement: social welfare program that people are “entitled to” benefit from if they meet certain eligibility requirements

Introduction How does the federal government spend its income? Federal spending is divided up into mandatory and discretionary spending. Mandatory spending pays for Social Security, Medicare, Medicaid, and other entitlements. Discretionary spending pays for everything else, including defense, education, law enforcement, environmental cleanup, and disaster aid.

Federal Spending There are two types of government spending. Mandatory spending is money that Congress is required by existing law to spend on certain programs or to use for interest payments on the national debt. Discretionary spending is spending about which lawmakers are free to make choices.

Federal Spending, cont. The federal government spends the funds it collects from taxes and other other sources on a variety of programs. Which are the three largest categories of expenditures in the federal budget? Answer: Medicare and other retirement, Social Security, and Defense (Other is equal to Defense at 19%).

Entitlement Programs Most of the mandatory spending items are for entitlement programs, which fund social welfare programs. The federal government guarantees assistance for all people who quality for such programs. Entitlements are a largely unchanging part of government spending. Congress can only change the eligibility requirements or reduce benefits if there is a change in the law.

Social Security Social Security is a huge portion of federal spending. About 50 million Americans receive monthly benefits from the Social Security Administration. The future of Social Security is uncertain. As the millions of baby boomers—people born after World War II— start to retire, the ratio of existing workers, who pay for Social Security, to retirees will fall.

Medicare and Medicaid About 42 million people receive Medicare benefits. It pays for hospital care and for the costs of physicians and medical services. Medicare costs have been rising as a result of expensive technology and people living longer. It faces the same problem as Social Security. Medicaid benefits help low- income families pay for their medical expenses The federal government shares the cost of Medicaid with state governments.

Other Mandatory Programs Other means-tested entitlements benefit people and families whose incomes fall below a certain level. These entitlements include: Food stamps and child nutrition programs Retirement benefits and insurance for federal workers Veterans’ pensions Unemployment insurance In recent years, there has been a debate over governmentally funded universal healthcare.

Discretionary Spending Checkpoint: Approximately how much of the federal government’s discretionary spending goes toward defense? Defense spending accounts for about half of the government’s discretionary spending. The Department of Defense uses this money to pay salaries of enlisted men and women as well as its civilian employees. This money also buys weapons, missiles, ships, tanks, airplanes, and equipment. Checkpoint Answer: About half

Discretionary Spending, cont. The remaining discretionary funds go to pay for the following: Education and training Scientific research Student loans Law enforcement Environmental cleanup Disaster relief

Federal Aid Federal taxes are sometimes used to help state and local governments. State and federal governments share the cost of Medicaid, unemployment insurance, education, lower-income housing, highway construction, and dozens of other programs. States also rely on federal aid for disaster relief.

Review Now that you have learned about how the federal government spends its income, go back and answer the Chapter Essential Question. How can taxation meet the needs of government and the people?