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$2.26 trillion

The largest category of income for the Federal Government is individual income taxes.

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A proportional tax, or flat tax, is a tax in which all income levels are taxed at the same rate.

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is when the tax rate you pay increases as your income rises.

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A regressive tax is a tax where the average tax rate decreases as income increases,

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The benefit principle, in the context of taxation and government spending, suggests that individuals should contribute to public services proportionally to the benefits they receive.

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Ability-to-pay refers to a principle holding that taxes should be levied according to one's ability to pay them

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The U.S. government has spent $3.57 trillion in fiscal year 2025 to date.

Social Security, Medicare/Medicaid, and Defense

Mandatory spending, also known as entitlement spending, is governed by existing laws, meaning the government is legally obligated to provide funds for these programs. Discretionary spending, on the other hand, is determined annually by Congress through the appropriations process, meaning the government has the flexibility to decide how much to allocate for these programs each year.

social security

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Federal

32.3

income taxes (individual and corporate), some sales taxes, and certain types of taxes on natural resources like severance taxes.

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education, health and human services (including Medicaid), and public welfare.

3.67%

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schools, health care services, and general administration

$5,004.55

property tax

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education, library, fire department.

30,000,000

libraries, museums, and cultural events.

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Most state tax revenues are sourced from sales and income taxes

State governments generally spend more on education, welfare, and higher education, while local governments focus on public safety, infrastructure, and schools.

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Definition and Image (How will you remember fiscal policy?)

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Definition and Image (How will you remember fiscal policy?)

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involves the government's use of spending and taxation to influence a country's economy

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begins with the President submitting a budget request to Congress, which then passes a budget resolution setting spending limits. Congress then creates and votes on appropriations bills, which are then passed to the President to sign into law

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a macroeconomic policy aimed at stimulating economic growth and preventing recession. It primarily involves increasing the overall supply of money or credit in the economy, or increasing government spending and/or decreasing taxes. This is typically done to increase aggregate demand, boost consumer spending, and encourage businesses to invest.

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a measure taken to slow down economic growth and reduce inflation. This is typically achieved by reducing the money supply and increasing interest rates, which in turn decreases spending and investment. Both monetary and fiscal policies can be contractionary.

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the risk of budget deficits, crowding out, and political considerations that can hinder its effectiveness.

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Definition and Image (How will you remember Monetary Policy)

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Definition and Image (How will you remember Monetary Policy)

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refers to the actions central banks take to manage the money supply and interest rates, ultimately aiming to influence economic growth and inflation.

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Monetary Policy Meaning, Types, and Tools

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the purchases and sales of government securities by a central bank to influence the money supply and short-term interest rates. These operations are a key tool for a central bank to implement monetary policy and achieve its macroeconomic goals.

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The discount rate is an interest rate used in financial calculations to determine the present value of future cash flows. A higher discount rate indicates greater risk and a lower present value, while a lower discount rate suggests lower risk and a higher present value.

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the percentage of deposits banks are legally required to keep on hand, either as cash in their vaults or as deposits at the Federal Reserve, rather than lending them out. Central banks, like the Federal Reserve in the US, can adjust these requirements to influence the economy's money supply and credit availability.

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to assess the functional severity of coronary artery blockages (stenoses) during cardiac catheterization

The Interest on Reserve Balances (IORB) rate influences banks because it sets a floor for interest rates throughout the economy, impacting their lending and investment decisions.

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time lag between implementation and its impact on the economy.