Govt Ch 14

  1. Budget
    a policy document allocating burdens (taxes) and benefits (expenditures)
  2. Budget Deficit
    expenditures > revenues
  3. Income Tax
    a tax on the portion of money individuals earn (supported by the 16th amendment)
  4. Progressive Tax
    the greater the income the greater the tax rate
  5. Federal Debt
    all government money borrowed over the years that is still outstanding
  6. Balanced Budget Amendment
    requires Congress to balance peacetime federal budgets
  7. Capital Budget + Examples
    a budget for expenditures on items that will serve for long term (ex: roads & buildings
  8. Tax Loophole
    tax break/benefit
  9. Tax Expenditures
    revenue losses that result from special exemptions, exclusions, or deductions on federal tax law
  10. What are 2 conditions associated with government growth in America?
    • the national security state
    • rise of the social service state
  11. Military Industrial Complex
    the close relationship between the military hierarchy and the defense industry
  12. Describe the rise & fall of the national security state.
    Experienced a rise during World War II and a fall after the end of the Cold War.
  13. Describe the rise & fall of the social service state.
    Experienced a rise during the Great Depression & the introduction of the New Deal. Has not yet experienced a fall.
  14. Income Security Expenditures
    a bundle of policies extending direct and indirect aid to the elderly, poor, or needy
  15. Social Security Act
    intended to provide a minimum level of sustenance to older Americans and thus save them from poverty
  16. Medicare
    added to Social Security; provides hospitalization insurance for the elderly and permits older Americans to purchase inexpensive coverage for doctor fees and other health expenses
  17. Incrementalism
    belief that the best predictor of this years budget is last years buget plus an increment
  18. "allowance theory"
    1/3 of budget follows this theory that government gives a lump sum to agencies to spend over a period of time
  19. Uncontrollable Expenditures
    expenditures determined by how many eligible beneficiaries there are for a program or by previous obligations of the government
  20. Entitlement
    policies for which Congress has obligated itself to pay x level of benefits to y number of recipients
  21. What two committees write the tax codes for the approval of Congress?
    House Ways & Means and the Senate Finance
  22. What branch of government holds the "power of the purse"?
  23. Congressional Budget & Impoundment Control Act
    designed to reform the congressional budgetary process
  24. In what 3 ways does the Congressional Budget & Impoundment Control Act reform the congressional budgetary process?
    • fixed budget calendar
    • budget committee in each house
    • Congressional Budget office
  25. Budget Resolution
    a resolution binding Congress to total expenditure level, supposedly the bottom line of all federal spending for all programs
  26. Reconciliation
    a congressional process through which program authorizations are revised to achieve required savings
  27. Authorization Bill
    an act of Congress that establishes a discretionary government program or an entitlement
  28. Appropriations Bill
    funds programs established by authorization bills
  29. Continuing Resolutions
    laws that allow agencies to spend at the previous years level
  30. Balanced Budget & Emergency Deficit Control Act
    mandated max allowable deficit levels for each year until 1993 when the budget was supposed to be in balance
  31. Sequestrians
    across the board spending cuts
  32. What type of relationship do the budget and government have?
    A linear relationship ("big budget, big government")
Card Set
Govt Ch 14
The Congress, President, & Budget: The Politics of Taxing & Spending