Intro to Federal Budget and Debt - Juarez AP...
Transcript of Intro to Federal Budget and Debt - Juarez AP...
![Page 1: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/1.jpg)
Federal Budget and Debt
![Page 2: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/2.jpg)
Has anyone every done a music parody for an AP class at YHS? • AP Gov: Budget Song
![Page 3: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/3.jpg)
To get us back in the swing of things
• SNL Cold Open
• Next slide we will try to determine the terms- no need to write them down; I will give you a handout
![Page 4: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/4.jpg)
Introduction- Basic Terms
• Budget:
• A policy document allocating burdens (taxes) and benefits (expenditures).
• Deficit:
• An excess of federal expenditures over federal revenues.
• Expenditures:
• What the government spends money on.
• Revenues:
• Sources of money for the government.
![Page 5: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/5.jpg)
Sources of Federal Revenue
• Income Tax • Shares of individual wages and corporate revenues.
• The 16th Amendment permitted Congress to levy an Income tax.
• The individual income tax (not businesses) is the largest single revenue source for the government.
• Our income tax is progressive: • those with more income pay higher rates of tax on their
income.
• is it confusing, unfair, or evil?
• Death and Taxes: Stephen Colbert
![Page 6: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/6.jpg)
Sources of Federal Revenues Cont..
• Borrowing • The Treasury Department sells bonds - this is how the
government “borrows” money.
• The federal debt is the sum of all the borrowed money that is still outstanding.
• The government competes with other lenders.
• Government does not have a capital budget, therefor the Federal Budget is NOT like a household budget
• Debt Limit- the limit of legally allowable debt set by Congress
• How many times has the debt ceiling been raised?
![Page 7: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/7.jpg)
Sources of Federal Revenue Cont…
• Taxes and Public Policy
• Tax Loopholes:
• Tax break or benefit for a few people
• Tax Expenditures:
• Special exemptions, exclusions or deductions - lots of money is lost.
• Tax Reduction:
• The general call to lower taxes.
• Tax Reform:
• Rewriting the taxes to change the rates and who pays them.
• Think back to the Colbert: Death and Taxes video clip
![Page 8: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/8.jpg)
Federal Expenditures
• Big Governments, Big Budgets • A big government requires lots of money.
• As the size of government increases, so does its budget.
• The Rise and Decline of the National Security State • In the 50’s & 60’s, the DOD received more than half the federal
budget.
• Defense now constitutes about one-sixth of all federal expenditures.
![Page 9: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/9.jpg)
Federal Expenditures Cont…
• The Rise of the Social Service State
• The biggest part of federal spending is now for income security programs.
• The biggest of these is Social Security.
• Social Security has been expanded since 1935 to include disability benefits and Medicare.
• These benefit programs face financial problems with more recipients living longer.
![Page 10: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/10.jpg)
![Page 11: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/11.jpg)
HDI: 0.923
IHDI: 0.856
GDP per
Capita: ≈
$42,000
HDI: 0.915
IHDI: 0.76
GDP per
Capita: ≈
$52,000
Human
Development
Reports
![Page 12: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/12.jpg)
Americans typically Want…
• Less overall spending
• More specific spending
• All with
• All with… lower taxes
![Page 13: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/13.jpg)
Federal Budget and Spending
This pie chart represents the total federal revenue from 2015. Having
federal expenditures greater than the federal revenue will create a deficit
for the year.
This pie chart represents the total federal expenditures for 2015,
broken into 3 separate categories.
![Page 14: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/14.jpg)
Federal Budget and Spending This pie chart represents the total federal expenditures for
MANDATORY spending for 2015
This pie chart represents the total federal expenditures for DISCRETIONARY spending for
2015
![Page 15: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/15.jpg)
What’s the Budget Process? • HOMEWORK: VIEW and understand “Creating The Budget”
PowerPoint on www.juarezapgov.weebly.com
![Page 16: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/16.jpg)
PAUSE
• Distribute Budget/Debt Handout
![Page 17: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/17.jpg)
![Page 18: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/18.jpg)
How Do You Balance a Budget?
• You spend less (or same) or tax more
• Spend less = fewer government programs
• Tax More = people have less money to spend
![Page 19: Intro to Federal Budget and Debt - Juarez AP GOVjuarezapgov.weebly.com/.../3/8/31386517/budget_debt_2016.pdf · 2020. 3. 13. · Sources of Federal Revenues Cont.. •Borrowing •The](https://reader033.fdocuments.us/reader033/viewer/2022052104/603f2dff6b269b1eae7beaa7/html5/thumbnails/19.jpg)
How people generally want to cut the budget
• Some Favorite Targets For Budget Cuts • Science, Space And Technology
• Total savings: $25.6 billion, less than 1 percent of the budget.
• The Arts and Humanities: • Total savings: NEA, $124 .4 million, NEH $141 .1 million, less than .01 percent of the
budget
• Foreign Aid And International Relations • Total savings: $28.5 billion, 1 percent of the budget
• The Program Formerly Known As Welfare • Total savings: Temporary Aid to Needy Families; food and nutrition assistance,
including food stamps: $65.5 billion, 2.39 percent
• And it all adds up to? A grand total of a little over 4 percent of the budget.
• If we have time: TED Talk linked on my website