“Tax reform means, 'Don't tax you, don't tax me.Tax that fellow behind the tree.”

― Russell B Long

“In this world nothing is certain but death and taxes.” ― Benjamin Franklin

“I like to pay taxes. With them, I buy civilization.” ― Oliver Wendell Holmes Jr.

“A democracy cannot exist as a permanent form of government. It can only exist until the people discover they can vote themselves largess out of the public treasury. From that moment on, the majority always votes for the candidate promising the most benefits from the public treasury, with the

result that democracy always collapses over a loose fiscal policy--to be followed by a dictatorship.”

― Alexander Fraser Tytler

AGENDAJanuary 9/10, 2014

Today’s topics Chapter 16: Financing the U.S. Government Chapter 16 Quiz

Administrative The Road Ahead…

Homework None

…or Prepare for Chapter 16 Quiz

The Road Ahead…Upcoming Dates…January 14/16 After school study & review sessions

January 16/17 Unit 4 Guide due

January 17 Portfolio EXTRA CREDIT option dueat 3:00 p.m.

Learning GoalsUnit 4 Guide

How should the government spend taxpayers’ money?• On what does the federal government spend the

most money? (top five categories and amounts)• How would you change these budget priorities?

Understand all Unit 4 concepts and Glossary terms• Explain and apply all Glossary terms and related

concepts

Chapter 16• Section 1: Taxes and Other Revenue

• Section 2: Borrowing and the Public Debt

• Section 3: Spending and the Budget

• Section 4: Fiscal and Monetary Policy

Chapter 16: Taxes and Other Revenues

What are the major sources

of revenue (income) for the federal

government?

TaxesIncome tax• Brackets

• Progressive tax

TaxesPayroll taxes• Social Security• Medicare• Unemployment

insurance

• Regressive tax

Taxes

Estate tax

Chapter 16: Borrowing & Public Debt

Interest

Deficit

Public Debt

Deficit & Surplus

Surplus & Deficit

U.S

. Deb

t Clo

ck

Chapter 16: Spending

What are the five major

categories of spending for the federal

government?

Chapter 16: Spending• Entitlements

• Controllable spending (Discretionary spending)

• Uncontrollable spending (Non-discretionary spending or Mandatory spending)

• Continuing resolution

Creating the Federal BudgetThe PRESIDENT proposes a budget outlining the administration’s policy priorities. The president’s proposal is submitted to Congress.

The House and Senate work individually (Budget Committee hearings/votes followed by a floor vote in each house), then together (in a conference committee), to pass a Budget Resolution.

The House and Senate work individually (Appropriations Committee hearings/votes followed by a floor vote in each house), then together (in a conference committee), to pass each appropriations bill.

As CONGRESS passes appropriations bills, they are presented to the PRESIDENT for his signature/veto.

• Congress must pass a Continuing Resolution to fund the government if appropriations bills are not passed on time

Chapter 16Section 4: Fiscal and Monetary Policy

• Gross Domestic Product (GDP)• Inflation• Recession• Fiscal policy• Monetary policy

Chapter 16

Homework

Before you leave Pick up your belongings Straighten up your area

Homework Prepare for Chapter 16 Quiz

Reminders: January 16/17 Unit 4 Guide due January 17 Portfolio EXTRA CREDIT option due

at 3:00 p.m.