Government Budget Process Planning Nick Cates Zander Peter
Government Budget Process & Planning Nick Cates Zander Peter Mitchell Gornto
What is a Budget? • A budget is an estimate of income and expenditure for a set period of time. • A budget is important because it can cause a nation to flourish or go into debt. • In order to thrive in the economy, the budget must be balanced. • The government is responsible for managing the nation’s income and expenditures.
Revenue • Revenue is the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses. • Revenue is important because without it, the country would become broke. • Revenue must be greater than or equal to the expenditures in order to maintain a balanced budget.
Expenditures • Expenditures are funds that are being spent. • If the expenditures are too great, a country will go into debt. • The U. S. spends money on things like research, assistance programs, and the military. All of these things are important in maintaining a strong country. • The U. S. is currently in debt because our expenditures are greater than our revenue.
Appropriations Bill • A legislative act proposing to authorize the expenditure of public funds for a specified purpose. • This is what allows the government to spend public funds on certain things.
Mandatory Spending • Spending that is automatically obligated due to previously-enacted laws. • This spending is basically required by law. • An example of mandatory spending would be entitlement programs such as Medicare and Social Security.
Discretionary Spending • US government expenditures that are set on a yearly basis. • This type of spending can be changed from year to year. • It is all at the discretion of the government. • An example of discretionary spending would be education because the budget can change.
Entitlement Programs • Entitlement programs are setup to help the American public. They include things like Social Security, Medicare, and Medicaid. • Citizen tax dollars are used to pay for these programs. • Entitlement programs are in place to help citizens who need some assistance.
Deficit • Deficit is the act of spending more money than you are bringing in. • The deficit can cause a country to have a high national debt. • The government would prefer to have a low deficit because it makes it easier to control the national debt.
National Debt • The national debt is the total amount of money that a country's government has borrowed, by various means. • This is the result of a high deficit. • The U. S. national debt is currently about $12, 240, 620, 500, 999. • This is inaccurate because it increases by the second.
Surplus • A surplus is the opposite of debt. • This happens when the revenue is higher than deficit.
Taxes
Progressive Tax • With a progressive tax, the tax rate increases as the taxable base amount increases. • Income tax is an example of progressive tax. • Higher income families have to pay a higher tax rate than families who are in a lower economic class.
Regressive Tax • This is where the tax rate decreases as the amount subject to taxation increases. • Cigarettes are an example of an item that carries a regressive tax. • Regressive taxes tend to hurt lower income families more severely.
Proportional Tax • This is when everybody is paying the same tax rate. • Each person may be paying different dollar amounts but it is the same tax rate for everybody. • Sales taxes can be considered proportional because everybody will be paying the same rate.
Video • https: //www. youtube. com/watch? v=ivv 11 Y 0 I 2 j. U
Current Event • http: //www. washingtonpost. com/blogs/wonk blog/wp/2013/04/05/americas-taxes-are-themost-progressive-in-the-world-its-government -is-among-the-least/
Works Cited • • • • http: //www. government. nl/issues/budget-process http: //bankruptcy-temecula. com/bankruptcy/2012/01/24/bankruptcy-and-tax-refunds/ http: //www. youtube. com/watch? v=ivv 11 Y 0 I 2 j. U http: //www. unitedliberty. org/articles/13332 -facts-that-demand-tax-reform http: //blog. mason 23. com/bid/110647/National-Debt-vs-Deficit-We-need-better-communications http: //www. american. com/archive/2008/october-10 -08/america-has-a-highly-progressive-tax-system http: //www. justfacts. com/nationaldebt. asp http: //www. fedupusa. org/2012/10/the-source-of-high-inflation-government-spending/ http: //www. best-practice. com/compliance-best-practices/government-budgetgovernment-budgets-compliance-best-practices/ http: //budget. house. gov/budgetprocess/ http: //nationalpriorities. org/budget-basics/federal-budget-101/federal-budget-process/ http: //www. washingtonpost. com/wp-srv/special/politics/federal-budget-process/budgetprocess. pdf http: //www. arizonaeducationnetwork. com/2009/07/brbs-what-are-they-budget-reconciliation-bill/ http: //thoughtfulwomen. org/2012/08/17/2012 -election-is-a-tipping-point-on-mandatory-spending/ http: //www. harris 4 kids. com/? page_id=17 http: //www. flashissue. com/blog/how-to-make-money-with-content-marketing/
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