1 Government spending Running the US Government cost this country around $2 Trillions dollars a year. Most of that money comes from taxes and Congress determines where that money comes from and in what way that money is spent. All revenue spending bills originate in the House and Ways Committee.
2 Entitlements What is an entitlement? An entitlement is considered to be an uncontrollable expenditure in legislature!
3 Entitlement An entitlement is a guarantee of access to benefits based on established rights or by legislation. Major Examples: Social Security, Medicare, Medicaid. Welfare, Unemployment, Pensions Other Examples are: Veterans' Administration programs, federal employee and military retirement plans, unemployment compensation, food stamps, and agricultural price support programs. Account for 53% of the US budget.
4 Uncontrollables Spending that Congress and the President have no power to change directly. Uncontrollables and Entitlements are often the same thing. The were created through prior legislation and legally they are required to obligate to them until legislation is changed. Uncontrollables account for 70% of all government spending! The Prime examples are: A. Interest payments on the national debt. B. Spending decisions made in the current year. C. Approximately half of the government spending in the United States. D. Welfare benefits but not unemployment benefits. **Uncontrollable Expenditures has a controversial definition as a Congress-person and a citizen may view it differently.
Download ppt "Government spending Running the US Government cost this country around $2 Trillions dollars a year. Most of that money comes from taxes and Congress determines."
AG What goods do governments provide? AG What role do entitlement programs and discretionary spending play in the government's regulation of.
Taxes & Government Spending Chapter 14 Section 3 Federal Spending.
1 Fiscal Policy Overview Keynesian Economics. 2 FISCAL POLICY OVERVIEW Fiscal Policy: Deliberate use of taxes, transfer payments, and government payments.