| A | B |
|---|
| Deficit | how much we overspend each year |
| Debt | the accumulation of deficits |
| 1992 | -$290 b |
| 1997 | -$27 b |
| 2000 | +$200 b |
| 2001 | -$50 b |
| 1992 | -$6 trillion |
| 2000 | -$3 trillion |
| Sates Expenses | 1. Education, 2. Social Services, 3. Highways |
| National/Federal Expencses (budget = 1trillion | 1. National defence ($300b) 2. Social Security/Medicare ($200-300 b) 3. Interest on Debt ($100b) |
| Local (state) Exspenses | 1. Roads 2. Utilities and Sewage 3. Schools 4. Police and Jails |
| Type of Taxes | a. income b.social insurence c. corporate income d. excise (sin) e. sales f. property |
| Progressive | higher income people pays a higher percentage on tax |
| Proportional | affects each income equally |
| Regressive | lower income pays a higher percentage on tax |
| National Government Taxes | income tax and social insurence tax |
| State Government Taxes | sales tax =4-4.5%, sales tax is regressive and unstable |
| Local Gavernment Taxes | sales tax and a little property tax |
| Audit | the government (IRS) checkes your taxes |
| John Keynes | said that the government should step in and help if the econimy does bad, even if it means that we will go into future debt |
