Budget 25

Open Ended

What do you think are some examples of revenue the government collects?

What do you think are some examples of things the government must pay for (Think ESPN)?

What do you think are some examples of things the government wants to pay for?

• Pay national debt.

• Pay Social Security

• Pay for national defense

• Maintain roads

• Maintain safety and security

​Needs

• Build a new park.

• Grant new tax cuts.

• Begin using the metric system.

​Wants

Government spending can be divided between wants and needs.

Open Ended

Use the excerpt to answer the question. The excerpt refers to tax cuts Trump want to extend, claiming they will benefit the economy and the country.

How does this excerpt explain why it is important to understand scarcity and to do a cost-benefit analysis?

Tracking the 2025 Trump Tax Cuts

• President Trump has called for permanent extension of the 2017 tax cuts, additional policies— including no taxes on tips, overtime pay, and Social Security benefits for retirees—as well as creation of a deduction for auto loan interest for American made cars. He has also promised higher taxes on US imports through a series of new tariffs.

• On February 25, 2025, the House passed a budget resolution to start reductions in taxes and spending over the next decade relative to a current law baseline. The resolution allows a $4.5 trillion increase in the deficit from tax cuts over the next decade so long as spending is cut by $2 trillion.

• At the end of 2025, the individual portions of the Tax Cuts and Jobs Act expire all at once. Without congressional action, 62 percent of filers could soon face a tax increase relative to current policy in 2026. At the same time, the price tag for extending the 2017 Trump tax cuts is in the trillions.

• Extending the expiring 2017 Tax Cuts and Jobs Act (TCJA) would decrease federal tax revenue by $4.5 trillion from 2025 through 2034. Long-run GDP would be 1.1 percent higher, offsetting $710 billion, or 16 percent, of the revenue losses. Long-run GNP (a measure of American incomes) would only rise by 0.4 percent, as some of the benefits of the tax cuts and larger economy go to foreigners in the form of higher interest payments on the debt.

Sourcing: https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/

Open Ended

Use the excerpt to answer the question. The excerpt refers to tax cuts Trump want to extend, claiming they will benefit the economy and the country.

How does this excerpt help people understand why Trump is looking to make the government smaller and increasing tariffs?

Tracking the 2025 Trump Tax Cuts

• President Trump has called for permanent extension of the 2017 tax cuts, additional policies— including no taxes on tips, overtime pay, and Social Security benefits for retirees—as well as creation of a deduction for auto loan interest for American made cars. He has also promised higher taxes on US imports through a series of new tariffs.

• On February 25, 2025, the House passed a budget resolution to start reductions in taxes and spending over the next decade relative to a current law baseline. The resolution allows a $4.5 trillion increase in the deficit from tax cuts over the next decade so long as spending is cut by $2 trillion.

• At the end of 2025, the individual portions of the Tax Cuts and Jobs Act expire all at once. Without congressional action, 62 percent of filers could soon face a tax increase relative to current policy in 2026. At the same time, the price tag for extending the 2017 Trump tax cuts is in the trillions.

• Extending the expiring 2017 Tax Cuts and Jobs Act (TCJA) would decrease federal tax revenue by $4.5 trillion from 2025 through 2034. Long-run GDP would be 1.1 percent higher, offsetting $710 billion, or 16 percent, of the revenue losses. Long-run GNP (a measure of American incomes) would only rise by 0.4 percent, as some of the benefits of the tax cuts and larger economy go to foreigners in the form of higher interest payments on the debt.

Sourcing: https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/

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Open Ended

How does the budget work?

This video is focused on the British government, but does an excellent job explaining how and why governments need to create budgets.

Use the video to help you answer (1) of the questions.

1. Explain the role of taxes in funding essential services and how it impacts your daily life.

2. Explain how prioritizing, saving, and budgeting are important both for individuals and for the government.

Let's explore the budget process: OneNote: What's Missing?

People's Pie | iCivics

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We've talked about  budgets and the need to plan carefully. Take a look at the budget in OneNote.