Budgetary Process By: Nick Walkerp & Will Clarke. “Girl look at that budget” -George Washington. Vocabulary . Budget Deficit Expenditures Revenues Income Tax Amendment XVI Federal Debt Tax Expenditures . Budget.
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“Girl look at that budget” -George Washington
Budget is a policy document allocating burdens and benefits. Burdens are taxes and benefits are expenditures.
Every year the president and the congress are required to appropriate funds. If funds are not appropriated than the government will come to a standstill and government agencies will not be able to function properly.
Deficit is an excess of federal expenditures over federal revenues. Expenditures is federal spending of revenue. Revenues are the financial resources of the federal government.
Over the past thirty years, the federal government has spent more money than it has received in taxes which has resulted in a deficit.
Income tax is shares of individual wages and corporate revenues collected by the government. In other words, citizens are required to pay the government a portion of the money they make. The first income tax was enacted in 1894. At that time, the tax was a mere two percent of total income however a lawyer opposing it called it a “communist march”. Soon after this remark the Supreme Court declared income tax unconstitutional in Pollock v. Farmer’s Loan and Trust Co. (1895).
Amendment XVI was adopted in 1913 and allowed Congress to levy(collect) an income tax. The Internal Revenue Service or IRS is responsible for collecting this tax.
Federal debt is all the money borrowed by the federal government over the years and still outstanding. Today the federal debt is more than $8 trillion. Nine percent, also, of all federal expenditures go towards paying off our debt.
Tax expenditure is the revenue losses that result from special exemptions, exclusions, or dedications on federal tax law. These represent the difference between what the government actually collects in taxes and what it would have collected without special exemptions.