Date: March 20, 2013

Topic: Economic Policy – Fiscal Policy

Aim: How does fiscal policy impact the United States?

Do Now: Multiple Choice Questions.

Types of CommitteesStanding Committees - permanent panel with

full legislative functions and oversight responsibilitiesSubcommittees – formed to tackle very

specific tasks within the jurisdiction of the full committees

Select or Special Committees - groups appointed for a limited purpose and limited duration

Joint Committees - includes members of both chambers to conduct studies or perform housekeeping tasks

Conference Committee - includes members of House & Senate to work out differences between similar bills

Past Economic Policies

Laissez-Faire – “hands off” “leave it alone”

Keynesian Economics – the government should manage the economy.

National Debt vs. The Deficit.

National Debt – all the money that the United States owes.

Deficit – the amount overspent in a year.

THE DEBT CLOCK

Fiscal Policy Fiscal Policy – policies where changes are made in the governments

methods of raising money and spending it – taxing and spending policies.

Where does the money come from?

1.) Federal Income Taxes

a.) largest single source of revenue – 45% of the national governments total revenues.

b.) Progressive Tax – the higher the income, the higher the tax rate.

c.) Corporations pay income taxes too.

d.) Complex tax code – simplify it!

2.) Social Insurance Taxes

Employers employ these taxes to their employees who then become eligible when they get older.

3.) Borrowing

The government often borrows money to fund its own taxpayers.

Deficit Spending – when the government spends more money than it takes in within a fiscal year

4.) Other Taxes

A.) Excise Taxes – levied on specific goods and services like alcohol and tobacco.

Excise taxes are regressive taxes – are the same for everyone.

B.) Estate Taxes – money and property that are inherited when an individual dies.

C.) Customs, duties, and tariffs levied on goods imported to the United States.