Federal Budget

A budget deficit occurs when...

• The government brings in more revenue than it spends for a given year
• The government spends more money than it brings in for a fiscal year

Which of the following is an argument for progressive taxes?

• Those who make more money work harder and therefore should not be taxed a  higher percentage
• Higher percentages of taxation on higher levels of income reduce motivation to work hard and excel in life
• Those who make less money are less able to pay and therefore should pay less

A progressive tax is...

• A tax that is the same percentage of income regardless of income levels
• A tax that increases in percent of income as income increases
• A tax that increases percentage as income decreases
• A tax on a goods and services that are bought

Income tax is-

• Money your employer pays to you
• Money you earn and put into the bank
• tax paid on the money you earn each year
• FREE MONEY!!

What is it called when the government takes in more in revenue than it appropriates?

• surplus
• revenue
• defecit
• appropriations

What means the government has spent more than it has raised

• revenue
• surplus
• deficit
• appropriations

What are those items of the national budget that must be funded?

• Mandatory
• Discretionary
• Planned
• Revenue

What are those areas of the National Budget that can but do not have to be funded?

• Mandatory
• Discretionary
• Revenue
• Deficit

Is all of the money the government has borrowed over the years and has not paid back

• deficit
• debt
• expenses
• mandatory spending

Who proproses the National budget

• Congress
• President
• Justices