2. Taxing Power—Concurrent Power Power to Tax Art. I, Section 8, Clause 1—“To lay and collect taxes… Congress has “the power of the purse”—Art. I, Sec. 9, Clause 7 Revenue bills MUST begin in House of Representatives Federal taxes—Largest source of Federal Revenue!!! Income Tax—16 th Amendment allowed income tax progressive income tax—income tax based upon how much you make. Flat Tax—Tax is equal for all people Regressive taxes—taxes given at a flat rate—Social Security, Medicare, unemployment insurance excise taxes—taxes on goods and services—Alcohol, gas, firearms, telephone bills, etc estate and gift taxes—taxes on estates granted after death and taxes on gifts.

3. Taxes Continued Deficit—spend more than you make Surplus—more income than you spend (1998-2001) war on terror brought us back to a deficit Controllable—Spending for items that have a fixed budget and can be raised or lowered—EPA funding, ED. funding ect., military spending (nonmandatory) Discretionary spending-funds in which officials have latitude to spend Uncontrollable—spending that is mandatory— public programs, interest on debt, entitlement programs

4. Federal Bureaucracy Bureaucracy –large, complex administrative structure that handles everyday business 1. Hierarchical authority, 2. job specialization, 3. formalized rules President is chief administrator—all agencies.

5. Draw Federal Bureaucracy

6. North Carolina US vs. North Carolina 10 th Amendment Federalism Article IV, sec. 4—Guarantee of a Republican form of government

7. Constitution US CONSTITUTIONNORTH CAROLINA

8. Legislative Branch US CONSTITUTIONNORTH CAROLINA

9. Executive Branch US CONSTITUTIONNORTH CAROLINA

10. Judicial Branch US CONSTITUTIONNORTH CAROLINA

11. Principles of NC Constitution

12. Leandro--Leandro InterviewLeandro Interview N.C. Const., Article I, Section 15 Sec. 15. Education. The people have a right to the privilege of education, and it is the duty of the State to guard and maintain that right. Article IX Sec. 2. Uniform system of schools. (1) The General Assembly shall provide by taxation and otherwise for a general and uniform system of free public schools, which shall be maintained at least nine months in every year, and wherein equal opportunities shall be provided for all students.

13. NC Bureaucracy