date: march 20, 2013 topic: economic policy – fiscal policy aim: how does fiscal policy impact the...
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Date: March 20, 2013
Topic: Economic Policy – Fiscal Policy
Aim: How does fiscal policy impact the United States?
Do Now: Multiple Choice Questions.
Types of CommitteesStanding Committees - permanent panel with
full legislative functions and oversight responsibilitiesSubcommittees – formed to tackle very
specific tasks within the jurisdiction of the full committees
Select or Special Committees - groups appointed for a limited purpose and limited duration
Joint Committees - includes members of both chambers to conduct studies or perform housekeeping tasks
Conference Committee - includes members of House & Senate to work out differences between similar bills
Past Economic Policies
Laissez-Faire – “hands off” “leave it alone”
Keynesian Economics – the government should manage the economy.
National Debt vs. The Deficit.
National Debt – all the money that the United States owes.
Deficit – the amount overspent in a year.
THE DEBT CLOCK
Fiscal Policy Fiscal Policy – policies where changes are made in the governments
methods of raising money and spending it – taxing and spending policies.
Where does the money come from?
1.) Federal Income Taxes
a.) largest single source of revenue – 45% of the national governments total revenues.
b.) Progressive Tax – the higher the income, the higher the tax rate.
c.) Corporations pay income taxes too.
d.) Complex tax code – simplify it!
2.) Social Insurance Taxes
Employers employ these taxes to their employees who then become eligible when they get older.
3.) Borrowing
The government often borrows money to fund its own taxpayers.
Deficit Spending – when the government spends more money than it takes in within a fiscal year
4.) Other Taxes
A.) Excise Taxes – levied on specific goods and services like alcohol and tobacco.
Excise taxes are regressive taxes – are the same for everyone.
B.) Estate Taxes – money and property that are inherited when an individual dies.
C.) Customs, duties, and tariffs levied on goods imported to the United States.
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