1. Date: March 20, 2013 Topic: Economic Policy – Fiscal Policy Aim: How does fiscal policy impact the United States? Do Now: Multiple Choice Questions.

2. Types of Committees  Standing Committees - permanent panel with full legislative functions and oversight responsibilities  Subcommittees – formed to tackle very specific tasks within the jurisdiction of the full committees  Select or Special Committees - groups appointed for a limited purpose and limited duration  Joint Committees - includes members of both chambers to conduct studies or perform housekeeping tasks  Conference Committee - includes members of House & Senate to work out differences between similar bills

3. Past Economic Policies  Laissez-Faire – “hands off” “leave it alone”  Keynesian Economics – the government should manage the economy.

4. National Debt vs. The Deficit.  National Debt – all the money that the United States owes.  Deficit – the amount overspent in a year. THE DEBT CLOCK

5. Fiscal Policy  Fiscal Policy – policies where changes are made in the governments methods of raising money and spending it – taxing and spending policies.  Where does the money come from?  1.) Federal Income Taxes  a.) largest single source of revenue – 45% of the national governments total revenues.  b.) Progressive Tax – the higher the income, the higher the tax rate.  c.) Corporations pay income taxes too.  d.) Complex tax code – simplify it!  2.) Social Insurance TaxesTaxes  Employers employ these taxes to their employees who then become eligible when they get older.  3.) Borrowing  The government often borrows money to fund its own taxpayers.  Deficit Spending – when the government spends more money than it takes in within a fiscal year

6.  4.) Other Taxes  A.) Excise Taxes – levied on specific goods and services like alcohol and tobacco.  Excise taxes are regressive taxes – are the same for everyone.  B.) Estate Taxes – money and property that are inherited when an individual dies.  C.) Customs, duties, and tariffs levied on goods imported to the United States.