Unit 2 -TACN 1

Public finance is a branch of the economics that studies the role of government in the economy, specifically how it raises and spends money to fullfill its functions

incomes taxes paid by individuals

payroll taxes paid by employers and workers

corporate income taxes paid by businesses

custom duties - taxes on import - paid by importer

excise taxes - taxes on specific goods - like gasoline, perfume

issuing treasury bonds

trust fund: when payroll taxes become trust fund

federal fund: income taxes and corporate taxes are desingnated as afederal fund

federal fund: pay for specific programs: social sercurities and medicare

trust fund: general revenues, congress and government can decide to pay just about anything

Debt held by public is the total amout the government owes to all of its creditor in the general public

Federal accounts: is amount of money that treasury has borrowed from itself

anyone can buy bond or tresury sercurity directly from the treaury through its website, treasurydirect.gov, or from banks, brokers

domestic investors: relgular Americans, private banks

international investors: some countries: China, Brazil, Taiwan

federal fund

trust fund

pubic debt

federal debt