The OMB predicts that budget deficits will continue to shrink through 2011 and that a budget surplus of $61 billion will occur in 2012. Public utilities primarily supply electricity, water, natural gas, and public transportation (such as buses and trains). Sales and excise taxes are considered taxes on consumption. The remaining 16% was from interest earnings and taxes assessed on benefits. What should the government actually be spending money on? Since spending and taxes are controlled by the president and the Congress, these elected officials played a leading role in directing the economy. In “Frequently Asked Questions about Strengthening Social Security” (2008, http://www.aarp.org/money/social_security/frequently_asked_questions_about_social _security.html), the AARP advocates increasing the income limit subject to Social Security withholding. Accessing the trust funds will put pressure on the federal budget, as the federal government has often borrowed money from the trust funds to pay for other programs but will no longer be able to do so. The federal government had revenues (receipts) of $2.5 trillion in 2007. 23:6), foreigners (Ex. state for the purpose of producing value for the citizens. As of 2008, the limit was $102,000; it has been raised many times over the years. In Who Pays Taxes and Who Receives Government Spending? The view that “taxation without representation” was tyranny contributed to the opposition to British rule that led to the Revolutionary War (1775–1783). All other trademarks and copyrights are the property of their respective owners. The main function of the U.S. federal government is creating and enforcing laws to ensure order and stability within society. | 7 According to the OECD, the tax burden as a percentage of the GDP in the United States was 25.6%, which compared favorably to nations such as the United Kingdom (35.6%), Canada (33.8%), Germany (35.5%), France (43.4%), and Sweden (50.6%), and was only slightly higher than Korea and Japan (both at 25.3%). This leads to greater borrowing, which puts more money into the hands of consumers, increasing the demand for goods and services. Since their inception, the Social Security and Medicare programs have been a source of partisan contention and debate. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list. This workforce accounted for 19% of the total payroll. Nearly 1.4 million of them were employed by local governments and accounted for $6.3 billion of monthly payroll. © 2019 Encyclopedia.com | All rights reserved. The government fulfills these functions in various ways that greatly affect citizens' daily lives, economic activities, and human rights. Likewise, an undersupply can lower consumer demand too much and stifle economic growth. The most common taxes levied by federal, state, and local governments are: Taxes are broadly defined as being either direct or indirect. The Economic Growth and Tax Relief and Reconciliation Act (EGTRRA) of 2001 was initiated by the first administration of George W. Bush (1946–) and is commonly referred to as the “Bush tax cuts.” The EGTRRA instituted a series of tax rate reductions and incentive measures to be phased in over several years. The basic functions of the United States government are listed in the Constitution. The role of government is to balance communal and individual good. The second largest component consisted of police, fire, and corrections officers. According to the Census Bureau (May 16, 2008, http://ftp2.census.gov/govs/estimate/06slsstab1a.xls), salaries and wages for local government employees amounted to $518.1 billion, or 37% of the total expenditures between 2005 and 2006. In general, private investments are seen as more stimulating for the economy because they provide direct funds for growth, such as the building of new factories and the hiring of new workers. TAX CUT ADVOCATES. Here they are: Looking at the above functions, you might be wondering what they mean for you and for other citizens on a daily basis.
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