Government Budget Process & Planning

Nick CatesZander Peter

Mitchell Gornto

What is a Budget?

• A budget is an estimate of income and expenditure for a set period of time.

• A budget is important because it can cause a nation to flourish or go into debt.

• In order to thrive in the economy, the budget must be balanced.

• The government is responsible for managing the nation’s income and expenditures.

Revenue

• Revenue is the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.

• Revenue is important because without it, the country would become broke.

• Revenue must be greater than or equal to the expenditures in order to maintain a balanced budget.

Expenditures

• Expenditures are funds that are being spent.• If the expenditures are too great, a country will go

into debt.• The U.S. spends money on things like research,

assistance programs, and the military. All of these things are important in maintaining a strong country.

• The U.S. is currently in debt because our expenditures are greater than our revenue.

Appropriations Bill

• A legislative act proposing to authorize the expenditure of public funds for a specified purpose.

• This is what allows the government to spend public funds on certain things.

Mandatory Spending

• Spending that is automatically obligated due to previously-enacted laws.

• This spending is basically required by law.• An example of mandatory spending would be

entitlement programs such as Medicare and Social Security.

Discretionary Spending

• US government expenditures that are set on a yearly basis.

• This type of spending can be changed from year to year.

• It is all at the discretion of the government.• An example of discretionary spending would

be education because the budget can change.

Entitlement Programs

• Entitlement programs are setup to help the American public. They include things like Social Security, Medicare, and Medicaid.

• Citizen tax dollars are used to pay for these programs.

• Entitlement programs are in place to help citizens who need some assistance.

Deficit

• Deficit is the act of spending more money than you are bringing in.

• The deficit can cause a country to have a high national debt.

• The government would prefer to have a low deficit because it makes it easier to control the national debt.

National Debt

• The national debt is the total amount of money that a country's government has borrowed, by various means.

• This is the result of a high deficit.• The U.S. national debt is currently about

$12,240,620,500,999.• This is inaccurate because it increases by the

second.

Surplus

• A surplus is the opposite of debt.• This happens when the revenue is higher than

deficit.

Taxes

Progressive Tax

• With a progressive tax, the tax rate increases as the taxable base amount increases.

• Income tax is an example of progressive tax.• Higher income families have to pay a higher

tax rate than families who are in a lower economic class.

Regressive Tax

• This is where the tax rate decreases as the amount subject to taxation increases.

• Cigarettes are an example of an item that carries a regressive tax.

• Regressive taxes tend to hurt lower income families more severely.

Proportional Tax

• This is when everybody is paying the same tax rate.

• Each person may be paying different dollar amounts but it is the same tax rate for everybody.

• Sales taxes can be considered proportional because everybody will be paying the same rate.

Video

• https://www.youtube.com/watch?v=ivv11Y0I2jU

Current Event

• http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/05/americas-taxes-are-the-most-progressive-in-the-world-its-government-is-among-the-least/

Works Cited• http://www.government.nl/issues/budget/budget-process• http://bankruptcy-temecula.com/bankruptcy/2012/01/24/bankruptcy-and-tax-refunds/• http://www.youtube.com/watch?v=ivv11Y0I2jU• http://www.unitedliberty.org/articles/13332-facts-that-demand-tax-reform• http://blog.mason23.com/bid/110647/National-Debt-vs-Deficit-We-need-better-communications• http://www.american.com/archive/2008/october-10-08/america-has-a-highly-progressive-tax-system• http://www.justfacts.com/nationaldebt.asp• http://www.fedupusa.org/2012/10/the-source-of-high-inflation-government-spending/• http://www.best-practice.com/compliance-best-practices/government-budgets/government-budget-gover

nment-budgets-compliance-best-practices/• http://budget.house.gov/budgetprocess/• http://nationalpriorities.org/budget-basics/federal-budget-101/federal-budget-process/• http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-process/budgetprocess.pdf• http://www.arizonaeducationnetwork.com/2009/07/brbs-what-are-they-budget-reconciliation-bill/• http://thoughtfulwomen.org/2012/08/17/2012-election-is-a-tipping-point-on-mandatory-spending/• http://www.harris4kids.com/?page_id=17• http://www.flashissue.com/blog/how-to-make-money-with-content-marketing/