1. Government Debt vs. Deficit
SSEMA1f- Describe the difference between debt and deficit

2. What is a budget deficit?
The national deficit is the amount of money the government went OVER budget in a GIVEN YEAR.
The amount spent exceeded government revenues.

3. What is a budget deficit?
The amount spent exceeded government revenues.

4. What is a budget surplus?
A national surplus occurs when the government spends less money than the revenue collected for any given year.

5. What is national debt?
The federal debt (public debt) is the TOTAL amount of money owed by the federal government to individuals, other countries, etc.
When there is a deficit at the end of the year, that money is added to the debt.

6. What caused the national debt?
Most of the U.S. national debt can be attributed to three things:
1. paying for wars
2. increased government spending during recessions
3. tax decreases not accompanied by decreases in government spending

7. Where does the Government get revenue?
The government borrows the money.
How To
Get
Money
Print Money
Bonds
Taxes*
Foreign Aid

8. What are the three types of taxes?
Progressive
Rises as income rises
Ex: Income tax
Proportional
Everyone pays the same percent of their income
Ex: FICA (Social Security)
Regressive
Those with lower income pay higher taxes
Ex: Sales tax

9. What are some other taxes to know
Property tax: Tax on the value of a home and the land it on
Capital Gains Tax: Tax based on the percentage of money people and businesses make on investments
Sin tax- high tax in order to reduce the consumption of s socially undesirable product