Mandatory SpendingDiscretionary Spending spending Congress doesn’t have to approve annually because it is tied to some mandatory program money that Congress must approve Examples: Social Security, Medicare, interest on the national debt Examples: Defense, Transportation, National Security

Estate Tax – percentage of a person’s wealth when they die Excise Taxes – on alcohol, tobacco, gasoline, telephone service Fees – entrance to national parks, museums, stamps, etc.

Progressive TaxationRegressive Taxation Tax rate changes based on a person’s income level (higher rate for higher incomes) Tax rate is the same regardless of income level Income Taxes Fees, excise taxes, sales taxes, flat tax Progressive vs Regressive Taxation