Chapters 15,16, & 17

1. Chapters 15,16, & 17 American Government

2. The Federal Bureaucracy • The federal bureaucracy, part of the executive branch, carries out most of the day-to-day work of the Federal Government • The Executive branch is composed of three groups of agencies: • The Executive Office of the President • The 15 Cabinet Departments • Many Independent Agencies

3. PRESIDENT White House Office Executive Office of the President Department of State Cabinet Departments Independent Agencies Agency/Administration Single administrator: Near-Cabinet status Commission Regulates business activities: Investigates or advises Securities & Exchange Commission CIA Authority/Corporation Board and manager; Business-like activities U.S. Postal Service

4. The Executive Office of the President The Executive Office of the President includes both advisors and agencies that work closely with the President The Executive Office of the President is an umbrella agency, some of the units are shown here. White House Office Council of Economic Advisors Office of National Drug Control Policy Office of Management and Budget National Security Council

5. Executive Departments

6. Executive Departments

7. Executive Departments

8. Independent Agencies • A number of independent agencies work outside the framework of the executive branch • There are three types of independent agencies that carry out specific duties

9. Independent Agencies

10. Taxes The Constitution gives Congress broad power to set federal taxes, which today are collected mostly as income taxes Progressive Tax – the more you make, the more you pay Tax Return – forms filed showing how much money you owe the government Payroll Taxes – money withheld from paychecks to send to the government: Social Security & Medicare Regressive Taxes – rate is the same for everyone – Social Insurance taxes Excise Tax – luxury tax Estate Tax – paid on the assets of someone who died Gift Tax – tax on gifts over $11,000 in one year Custom Duty – tax on goods brought into the U.S. from another country

11. Nontax Revenues and Borrowing The United States has a huge public debt, created by borrowing when government spending exceeded its income. In a year when the government spends more than it takes in, it must borrow money to make up the deficit. Income Spending

12. Spending & the Budget Creating the Federal Budget • The annual budget-making process is a joint effort of the President and both houses of Congress • The federal budget, the President’s yearly plan for conducting government, is a very important document President, with help of Office of Management and Budget, creates the budget President sends the budget to Congress Congress gives budget to Budget and Appropriations Committees in each house Congress approves final budget Congress sends appropriations bills to the President to authorize spending for the coming year

13. Foreign Affairs and National Security President • Both the State Department and the Defense Department assist the President in carrying out foreign policy • In the U.S., the President makes and carries out foreign policy with the help of key departments DEFENSE DEPARTMENT Secretary of Defense Joint Chiefs of Staff Dept. Dept. Dept. of the of the of the Navy Army Air Force STATE DEPARTMENT Secretary of State Ambassadors

14. Other Foreign & Defense Agencies Several government agencies are closely involved with foreign and defense policy

15. Foreign & Defense Alliances U.S. Foreign Policy Participation in the United Nations Regional security alliances Foreign Aid Money Military assistance