Transcript 14.2 Federal, State, and Local Budgets

14.2 Federal, State,
and Local Budgets
Objectives
 Identify the top spending category in the federal
budget and the top source of revenue.
 Identify the top spending category in state
budgets and the top source of revenue.
 Identify the top spending category in local
budgets and the top source of income.
 Compare the size of government here and
abroad.
CONTEMPORARY ECONOMICS
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14.2 Federal, State,
and Local Budgets
Key Terms
 government budget
 payroll taxes
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14.2 Federal, State, and Local Budgets
SLIDE
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Federal Budgets
A government budget is a plan for
outlays and revenue for a specified period.
CONTEMPORARY ECONOMICS
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14.2 Federal, State, and Local Budgets
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Federal Spending
Redistribution
Defense
Interest payments
Other outlays
CONTEMPORARY ECONOMICS
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14.2 Federal, State, and Local Budgets
SLIDE
Composition of Federal
Spending Since 1960
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Figure 14.3
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14.2 Federal, State, and Local Budgets
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Federal Revenue
Sixteenth Amendment to the U.S.
Constitution empowered Congress to levy
a tax on personal income.
Federal Insurance Contributions Act
(FICA)
Payroll taxes are taxes deducted from
paychecks to support Social Security and
Medicare
CONTEMPORARY ECONOMICS
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14.2 Federal, State, and Local Budgets
SLIDE
Composition of Federal
Revenue Since 1960
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Figure 14.4
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14.2 Federal, State, and Local Budgets
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State Budgets
State spending
State revenue
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14.2 Federal, State, and Local Budgets
SLIDE
Composition of State Spending
and State Revenue
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Figure 14.5
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14.2 Federal, State, and Local Budgets
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Local Budgets
Local spending
Local revenue
CONTEMPORARY ECONOMICS
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14.2 Federal, State, and Local Budgets
SLIDE
Composition of Local Spending
and Local Revenue
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Figure 14.6
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14.2 Federal, State, and Local Budgets
SLIDE
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Relative Size and Growth of
Government
How has the size of government in
America changed in recent years?
How does that size compare with what’s
been going on in other major economies
around the world?
CONTEMPORARY ECONOMICS
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14.2 Federal, State, and Local Budgets
SLIDE
Government Outlays as
Percentage of GDP
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Figure 14.7
CONTEMPORARY ECONOMICS
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