1. Federal, State & Local Budgets (14.2)

2. Federal Budgets

3. Government Budget Plan for outlays and revenues for a yr. Currently more than $15,600,000,000,000 If laid from end to end w/$100 bills, it would cover a 14-lane highway from northern Maine to southern California

4. Federal Spending Comparing GDP spending from yr. to yr. 1929: govt. spending = 10% of GDP 2010: govt. spending = 44% of GDP

5. Federal Revenue Before 1913, all federal revenue came from: – Taxes on imports/specific goods – Property taxes 1913 – 16 th Amendment granted Congress power to collect a personal income tax – 2004: 44% of all FR came from federal income taxes Payroll taxes – Deductions from paychecks to pay for Social Security & Medicare; labeled FICA on pay stubs – 2004: 40% of all FR came from payroll taxes

6. Federal Revenue In most years, govt. will spend more money than it takes in from its revenue sources – http://www.usdebtclock.org/ http://www.usdebtclock.org/ – Govt. tries to make up for this by borrowing money from the states U.S. Government Spending website – http://www.usgovernmentspending.com/us_20t h_century_chart.html http://www.usgovernmentspending.com/us_20t h_century_chart.html

7. State Budgets

8. State Spending Local govt. aid is mostly funding for schools Welfare payments is for elderly medical care

9. State Revenue Excise taxes – taxes on specific goods w/i a state 3% sales tax in Madison, AL

10. Local Budgets

11. Local Spending 1/6 of LS comes from local govt. – Federal/state govt. take up the rest

12. Local Revenue

13. Size/Growth of Government

14. International Comparison