1. What is it? How do we fix it?
The U.S. Federal Budget
What is it? How do we fix it?

2. President, Congress & the Budget
Where should we invest tax dollars?
President, Congress & the Budget
Which programs should be expanded?
Should there be a tax cut?
Is it okay to continue to run a large deficit?
Which programs should be cut?

3. What Is the Budget?
A plan for how the government spends taxpayers’ money.
A plan for how the government pays for its activities.
A plan for government borrowing or the repayment of borrowed funds.
Something that affects the nation’s economy.
Something that is affected by the nation’s economy.

4. Budget Crisis Collecting less tax revenues Economic Downturn
Spending for Job Growth

5. Where Does the Money Come From?
Individual Income Taxes
Payroll Taxes
Corporate Taxes
Miscellaneous – excise taxes, customs duties, etc.
Estate and Gift Taxes
Basically, 85% comes from employment, so high unemployment = low revenue

6. Discretionary – 39% of Budget
Federal Spending
Mandatory – 61% of Budget
Discretionary – 39% of Budget
Spending required by law
Examples:
Spending decided upon yearly by President & Congress
Examples:
Social Security – 20%
Medicare – 13%
Defense – 19.7% (2010)
Education – 19% w/others

7. Discretionary Spending
Defense – 19.7%
Other – 19.1%
National Defense
Education
Transportation
Health
International Affairs
Natural Resources & Environment
Energy
+ 7 Other Areas

8. Deficit Spending – Good or Bad?
Positive
Negative
Invests in the country’s future.
Spend needlessly on high interest