1. Fiscal Policy Government use of taxes and spending Government revenue and expenditure

2. Budget Terms Expenditure versus Revenue Deficit / Balanced Budget / Surplus Debt Mandatory versus Discretionary

10. By the Numbers 2014 Expenditure = 3.5 trillion –3,504,000,000,000 2014 Revenue = 3 trillion –3,021,000,000,000 2014 Deficit = 483 billion –483,000,000,000 National Debt = 18 trillion

13. Income Tax PROGRESSIVE Tax –Higher incomes are taxed at a higher rate

16. Tax Revision Ideas Progressive Tax with limits on deductions Flat Tax with no/few deductions “Fair Tax”

17. Tax Revision Obama- “Buffet Rule” –Minimum Federal Rate of 30% on incomes over 1 million/year –Ave. America= 16% –Millionaires = 20.1%

19. Payroll Taxes Employee-taken directly from paycheck Employer- paid based on wages paid out Examples: –Social Security (employer match) –Medicare (employer match) –Unemployment tax (employer only)

21. Customs Duties (Tariffs) Tax on imported goods 0-20% Average 3% (1% with FT) Free-Trade (20 Countries) Australia Bahrain Canada Chile Colombia Costa Rica Dominican Republic El Salvador Guatemala Honduras Israel Jordan Korea Mexico Morocco Nicaragua Oman Panama Peru Singapore

23. Federal Excise Tax Fuel ($0.184 per gallon) Tobacco ($1.01 per pack) Alcohol Air Travel

24. General Fund Excise taxes Cigarettes$1.01pkg 20 Cigars$0.40ea. cigar Distilled Alcohol 80 proof$2.14750 ml Wine 14% Alcohol or Less$0.21750 ml Wine 14 to 21%$0.31750 ml Wine 21 to 24%$0.62750 ml Wine Sparkling$0.67750 ml Wine Carbonated$0.65750 ml Hard Cider$0.04750 ml Beer$0.0512 oz Pistols and Revolvers10%price Other Firearms and Ammunition11%price Tanning Salon10%price Gas guzzler 21.5-22.5 mpg$1,000.00vehicle Gas guzzler 12.5-13.5 mpg$6,400.00vehicle Telephone Calls3%local

26. Estate (Death Tax) Estates over $5,250,000 Top % of 40%

27. By the Numbers 2014 Expenditure = 3.5 trillion –3,504,000,000,000 2014 Revenue = 3 trillion –3,021,000,000,000 2014 Deficit = 483 billion –483,000,000,000 National Debt = 18 trillion

28. State Revenue

30. State Budget Top Revenue Sources –3.07% income tax –6% sales tax Top Expenditure- Education

34. Adam Smith “An Inquiry into the Nature and Causes of the Wealth of Nations” aka “The Wealth of Nations” “Invisible Hand” Laissez-Faire

39. Demand-side Economics John Maynard Keynes

40. WPA

45. Supply-side Economics Aka “trickle-down” Reaganomics

48. Sides Game

49. Revenue EXCEEDS EXPENDITURE

50. Current Debt 15 trillion 16 trillion 17 trillion 18 trillion

51. Sum of All Deficits and Surpluses

52. Supply-side Funny nickname

53. Spending that Requires Annual Congressional Approval

54. Revenue EQUALS Expenditure

55. Mandatory or Discretionary Largest % of Federal BUdget

56. Largest Mandatory Spending

57. Expenditure EXCEEDS Revenue

58. Largest Discretionary Spending

59. 2013 Deficit

60. 2014 Revenue 1.45 trillion 3 trillion 3.5 trillion 6.2 trillion

61. PL measurement

62. Automatic Spending

63. 2014 Expenditure 1.45 trillion 3 trillion 3.5 trillion 6.2 trillion

64. Aggregate Means

65. Largest Source of Revenue

66. Supply-side

67. Example of Excise Tax

68. # of Countries Free Trade

69. Death Tax (real name)

70. Example of Payroll Tax

71. Adam Smith Book

72. Largest State Expenditure

73. Largest State Revenue Source

74. Demand-side

75. PL stands for

76. Output Measurement

77. Laissez-Faire

78. Keynes supported _____-side

79. Reagan supported _____-side

80. Invisible Hand

81. Adam Smith What controls the economy?