1 / 14

Taxing and Spending

Chapter 20. Taxing and Spending. Background. Authority for the budget process rests with Congress. I-7-1, I-8-1, I-8-2, I-9-7, 16 th Amendment. Budget and Impoundment Control Act of 1974. Requires President to spend the funds Congress appropriates instead of withholding funds

piper
Download Presentation

Taxing and Spending

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 20 Taxing and Spending

  2. Background • Authority for the budget process rests with Congress. • I-7-1, I-8-1, I-8-2, I-9-7, 16th Amendment

  3. Budget and Impoundment Control Act of 1974 • Requires President to spend the funds Congress appropriates instead of withholding funds • Forces Congress to examine total national taxing and spending at least twice in each budget cycle

  4. The Budget Cycle • Operates on a fiscal year from October 1 – Sept 30 • FY 2011 = October 1, 2010 through September 30, 2011 • FY 2011 estimated budget is 3,833,861,000,000 in outlays (3.8 trillion) [www.gpoaccess.gov]

  5. The Budget Cycle • 18 months prior to fiscal year, executive branch prepares budget • OMB receives advice from the CEA bargaining begins • Spring review – all agencies are required to review their programs, activities, and goals then submit requests to OMB • Fall review – OMB works under President’s guidelines and reviews the requests • November – director’s review : director of OMB meets with cabinet secretaries and budget officers • Budget must be completed by January to be included in the Economic Report of the President

  6. The Budget Cycle • 9 months prior to the fiscal year • President takes the OMB’s proposed budget, approves it, and submits it to Congress • Congressional budget process takes over • First budget resolution is to be passed in May – it sets overall revenue goals and spending targets  bargaining • Second budget resolution is to be passed in September – it sets “binding” limits on taxes and spending • Authorization and Appropriation • Appropriation occurs only when final bill is passed (meaning the budget = law)

  7. The Budget Cycle • Notables: • Between 1978 – 1996 Congress did not pass a complete budget by October 1 leading to continuing resolutions

  8. Current Domestic Spending Issues • Health Care • Estimated to account for 17.3% of total US Economy in 2009 • Cost of advanced technology : MRI = $2 million • 45.7 million of US population is uninsured

  9. Current Domestic Spending Issues • Health Care (cont’d) • Medicare & Medicaid benefits approx 35-40 million people for each (although some receive both due to age and income) • Medicare is 2nd largest domestic spending program (after Social Security); $325 billion in 2005 • Medicaid is a joint Federal – State program established in 1965; focus upon poor, disabled, and children. Federal government funds 57% of program.

  10. Current Domestic Spending Issues • Health Care (Cont’d) • New York State has over 25% enrollment in Medicare/Medicaid programs • 43% of Medicaid spending(2004) goes towards persons with disabilities; the next highest allocation is for nursing home care

  11. Current Domestic Spending Issues • Anti Poverty Programs • FY 2010 allocated $686 billion (1/6th of all federal expenditures) to federal programs that support persons of limited income (includes unemployment, housing, disability ins, etc.) • TANF (Temporary Assistance to Needy Families) … 2 yrs of assistance at a time / lifetime limit of 5 years • Food Stamps – FY 2010 $99 billion

  12. Current Domestic Spending Issues • Crime • FY 2010 federal law enforcement = $55 billion • Check fraud costs = $10 billion a year • Stocks, bond fraud = $40 billion a year • Insurance fraud = $80 billion a year • US has the highest incarceration rate in the world at 748 per 100,000 people (2009)

  13. Budget Summary • For every program that is funded, choices must be made as to who receives and who does not. • Groups that are most influential and persuasive will often be heard over those that are not. • Self Interest vs. The Interest of the Whole

  14. Sources • www.gpoaccess.gov • www.federalbudget.com • http://www.washingtonpost.com/wp-srv/politics/interactives/budget101/ • http://americanpublicmedia.publicradio.org/engage08/budgethero/

More Related