1. CH. 14 Congress, Pres and the Budget Money money monay Monay!

2. Essential Question  Who bears the burdens of paying for the government?  Who receives the benefits?

3. Budgeting  Every year, Congress and President have to set up a budget (Constitution)  Budget: policy document allocating burdens(taxes) with benefits(expenditures)  “Series of goals with price tags attached”

4. No more money  Deficit: when the government spends(expenditure) more than they receive(revenue)  Expenditure: Gov’t spending  Revenue: Financial resource of gov’t  Income tax and Social Security tax are the largest revenues.

5. How do we get money?  Income tax: shares of individual and corporate wages collected by government  Made legal by the 16 th Amendment (1913)  Originally income tax appeared during the Civil War  Pollock v. Farmer’s Loan and Trust Co. (1895) declared that unconstitutional

6. Income Tax  In general is a progressive tax  The more you make, the more you pay.  Some people want a “flat” tax  Ex: All people pay a 10% tax  Others suggest a national sales tax.  Taxes on goods you purchase.