| A | B |
|---|
| discretionary spending | optional spending of government money |
| mandatory spending | government spending on programs that are required by law |
| Social Security | government programs to benefit elderly, disabled, or those living in poverty |
| Medicare | federal health insurance program covering individuals over 65 and certain younger people with disabilities |
| progressive tax | the higher a person’s income, the higher the percentage of tax that must be paid |
| surplus | when revenue is greater than the amount of expenditures |
| deficit | when expenditures are greater than revenue |
| balanced budget | when revenue and expenditures are equal |
