1. Wednesday 11/18 RAP Today: CE presentations Take notes on Ch. 16.1 and 16.2

2. Cutting an agency! In your groups: Please pick one agency to cut from the federal bureaucracy! Look in Ch. 15.3, 15.4 and 15.5 On one piece of paper-list the names of your group members. Write down the agency name Why you want to cut it. Pros and cons of cutting it from the federal government. At least 3 of each!!!

3. What do you think of this political cartoon?

5. Monday 3/28 RAP Which president vomited on the Japanese Prime Minister? President George Herbert Walker Bush (Sr), after he did, a new word entered the Japanese language. Bushusuru means “to do the Bush thing,” or to publicly vomit. Today: Ch. 16 notes President presenations

6. Thursday 3/31 RAP Which president was the only president to serve in both WWI and WWII? President Dwight David Eisenhower (1890-1969) Today: Finish “Let Bartlet be Bartlet” Ch. 16 Debt and Deficit reading Dave

7. Ch. 16: Financing Government

8. Ch. 16.1 Taxes Fiscal year extends from October 1 st thru September 30 th. Power to tax: Article 1, section 8, Clause 1 Gives Congress the power to tax in order to raise money needed to operate the Federal Government.

9. Constitutional limitations: Congress must exercise the taxing power in accord with the Constitution. Four expressed limits: 1. Taxes must be used for public purposes only. 1. Not for the benefit of private interests. 2. Prohibition of export taxes. 1. Tariffs can be applied only to imports –goods brought into the U.S. 3. Direct taxes must be equally apportioned, or distributed. 1. Income taxes 2. Indirect taxes, initially placed on the distiller, but then is put on the person. (liquor) 4. Indirect taxes, such as duties and imports, must be levied at the same rate in all parts of the country.

10. Implied Limitation: Federal taxes cannot be imposed on state governments when they are performing such tasks as providing public education, furnishing health care, or building streets and highways. McCulloch v. Maryland, in 1819, declared that “the power to tax involves the power to destroy.” The federal government could tax the state out of existence and so destroy the federal system. The federal government does tax state and local activities that are of a nongovernmental character; liquor.

11. Current Federal Taxes: Individual income tax: largest source of federal revenue., 1913 Corporation income tax: must pay a tax on its net income, all earnings above the costs of doing business. Social insurance taxes: collected to fund Social Security program, Medicare, and unemployment compensation. Excise tax: tax laid on the manufacture, sale, or consumption of goods, and /or the performance of services. Estate and gift tax: levy imposed on the asset of one who dies; one imposed on the making of a gift by a living person. First 675,000 of an estate is exempt. Up to 10,000 in t ax free gifts in one year. Custom duties: tax laid on good brought into the US from abroad. Tariffs, import duties, or imposts.

12. Taxing for nonrevenue purposes: This purpose is to regulate and even discourage some activity that Congress thinks is harmful or dangerous to the public. Narcotics Certain firearms Hunting of migratory birds Gas-guzzling cars Etc.

13. In Ch. 16.1 please complete the rest of the guided reading notes on terms.

14. Nontax revenues and borrowing Ch. 16.2 Nontax Revenues: Interest is a charge for borrowed money. Canal tolls Fees for passports Copyrights, patents, and trademarks. Seigniorage: profit the US Mint makes in the production of coins. United States Postal Service: generates nontax revenue for the government by selling mint-condition stamps to collectors. $100 million each year.

15. Borrowing: The government often borrows money for: Costs of short and long term crisis situations Finance large scale projects that could not be paid for out of current income. WWI Great Depression WWII Congress must authorize all federal borrowing. Borrowing is done by the Treasury Department. They issue securities to investors (banks, individuals, etc.) Government borrows at low interest rates.

16. Public Debt: Result of the Federal Government’s borrowing over many years. It is the government’s total outstanding indebtedness. All of the money borrowed, and not yet repaid, plus the accrued, or accumulated, interest. US DEBT CLOCK Debt more than doubled in the years 1981 thru 1985 because of deficit financing. By 1992 deficit spending had quadrupled the debt. There is no constitutional limit on the amount that may be borrowed, and so there is no constitutional limit on the public debt. There is a ceiling that congress has put, but they adjust it as needed. Should future generations be worried?

17. Deficit: The country’s annual deficit is the difference between what the government collects in revenues and spends in one year. National Debt: which exceeds $18 trillion, is the net of annual deficits minus any annual surpluses.$18 trillion

21. Please read and add notes on the terms for Ch. 16.2, thank you.

22. Debt and Deficit In your groups, please have one person write the answers to the group discussion (B) question. C. Create a poster for your group on how you would handle the debt and deficit. Please be specific and be able to explain why you would cut or not cut; increase or decrease taxes, etc.

23. Please open your book to page 457 Please read this page, and with your group, create two charts with one describing the advantages of such an amendment and the other discussing the disadvantages of it. Share with the class your charts.

24. A Guide to the Federal Budget Deficit and National Debt Groups will address the debt and deficit Individually students will read the hand out on the debt and deficit, after each section please answer the questions on the handout with your partner; at the end of the reading please answer the three individual questions on the reading. Also, answer the individual questions in the box on how you would handle the debt –where to cut. In groups, students will solve the debt and deficit problem.

25. Monday 4/4 RAP What suggestions do you have to help with the debt? Explain Today: Finish Ch. 16 Dave

26. Ch. 16 Spending and the Budget Key Terms Entitlement: benefits that federal law says must be paid to all those wo meet the eligibility requirements. i.e. certain age or income level. Medicare, Medicaid, food stamps, unemployment compensation, and veterans pensions. Interest on public debt has grown to become the second largest category of federal spending today.

27. Controllable and Uncontrollable Spending (know these for later) Controllable Spending: Congress and the President decides how much will be spent each year. Examples: military equipment, aid to education, and environmental protection. Uncontrollable Spending: estimated to be 80% of all current spending. Congress and the President have no power to change it directly. Examples: interest on debt, social security, food stamps, entitlements

28. Federal Budget The President initiates the spending process by submitting a budget at the beginning of each congressional session. The federal budget serves as a political statement through a declaration of the public policies of the U.S., with dollar signs attached to it. It is the Presidents work plan for the conduct of government.

29. Look at the chart on page 460, in what three categories has the government spent the most money since 1997? The budget making process begins 18 months prior to the start of the fiscal year for the budget intended, each federal agency prepares detailed estimates then submits to Office Management and Budget (OMB)

30. Congress becomes involved in the process by reviewing the budget and then enacting on several appropriations measures. If the 13 appropriations measures are not passed by the beginning of the fiscal year then an emergency spending bill must be passed to avoid government shutdown. Also known as continuing legislation.

31. The budget process 1. each federal agency Submit estimated budgets to the 2. Office of Management and Budget (OMB) Which reviews estimates, holds 3. Hearings, Writes President’s 4. Budget, And submits it to 5. and 6. House and Senate Appropriations and Budget Committees (CBO) which analyze budget with help of the 7. Subcommittees and propose 8. Measures 9. Bills Congress passes 13 10. Appropriation measures before October 1 st or must pass (an) 11. Emergency spending legislation (continuing resolution) to keep the government operating

32. Compare and contrast entitlement programs with programs in which spending is controllable. Look back over your notes---

33. Monday 4/13 RAP How would you solve the debt and deficit problem? Explain. Today: Finish group work— Discussion questions with group– and create poster…then present to class. Turn in Ch. 14, 15, and 17 handout Study for test

34. Tuesday 11/18 RAP Is your group ready to present you solution or plan to help the debt and deficit? Today: Present plans for the debt and deficit. Read Ch. 17.1 and complete the section assessment.