Government Budgeting and Taxation Concepts

The video explains how taxes fund government services at local, state, and national levels. It covers the history of taxation, Adam Smith's principles for fair taxation, and the types of taxes in America, including sales, property, and income taxes. The video also discusses the federal budget, budget deficits, and national debt, highlighting how the government borrows money through bonds to cover deficits.

What is the primary source of revenue for the government to pay for services?

• Donations

• Taxes

• Loans

• Investments

Which ancient civilization paid taxes with crops and livestock?

• Ancient Mesopotamia

• Ancient China

• Ancient Egypt

• Ancient Greece

According to Adam Smith, how should taxes be structured?

• Collected randomly

• Everyone pays the same amount

• Only the wealthy pay taxes

• Based on a person's ability to pay

What type of tax is paid when purchasing goods?

• Income tax

• Property tax

• Sales tax

• Luxury tax

Which tax is typically included in a mortgage payment?

• Income tax

• Property tax

• Capital gains tax

• Sales tax

What is a progressive tax?

• A tax that only applies to luxury items

• A tax that decreases as income increases

• A tax that remains the same regardless of income

• A tax that increases as income increases

What is it called when government expenditures exceed revenue?

• Budget deficit

• Balanced budget

• Budget surplus

• Fiscal neutrality

How does the government typically cover a budget deficit?

• By selling bonds

• By cutting services

• By increasing taxes

• By printing more money

What term describes the total amount of money the government owes?

• Budget deficit

• Public expenditure

• Fiscal imbalance

• National debt

In what year was the national debt approximately 21 trillion dollars?

• 2020

• 2018

• 1998

• 1960