Federal Budget Vocabulary – Flashcards
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Federalism
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distribution of power in an organization between a central authority.
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Federal Budget
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revised every year, a plan for how the U.S government will take in money. This was developed by the President and congress. The purpose is to outline the budget for the nations priorities for upcoming years.
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OMB
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Office of Management and Budget is responsible for drawing up the president's budget for the upcoming fiscal year. Begins October 1st ends September 30th.
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Fiscal Year
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begins on Oct. 1st, ends September 30th.
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Budget Deficit
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Amount by which spending exceeds revenue. To cover the governments debts, the U.S Treasury must borrow money
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National Debt
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Total sum of money borrowed by the governments from the US population, lending institutions, foreign banks, and the governments own holding most notable the social security trust fund.
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Tax cuts
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reduced income tax rates, offered breaks to families and business, and cut taxes on profits from investments and sales of assets such as real estate.
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AMT
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Alternative Minimum Tax to ensure that wealthy Americans pay their fair share of taxes.
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Earmarks
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designed mainly to please a legislators constitutions and supporters
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Social Securty
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largest, most expensive program
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MEdicare
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helps pay for hospital nursing care and other routine medical services
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Pay as you go plan
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requires that any tax cuts or increases in entitlement spending by offset with spending reductions.
