# data[].attributes.body
A tax system where everyone pays the same percentage of their income, regardless of earnings.

# data[].attributes.body
A tax system where the tax rate increases as income increases

# data[].attributes.body
A tax system where lower income individuals pay a higher percentage of their income compared to higher income individuals

# data[].attributes.body
The idea that those who benefit from government services should pay taxes in proportion to the benefits they receive

# data[].attributes.body
The concept that taxes should be levied according to an individual’s ability to pay, meaning higher earners pay more

# data[].attributes.body
What is the dollar value of all government revenue to date?

Around $4.4 trillion

# data[].attributes.headline
What is the largest category of income for the Federal Government?

# data[].attributes.subject
What is the largest category of income for the Federal Government?

# data[].attributes.body
Individual Income Taxes are the largest source.

# data[].attributes.headline
What is the amount that the government has spent to date?

# data[].attributes.subject
What is the amount that the government has spent to date?

# data[].attributes.body
Around 6.1 trillion

# data[].attributes.headline
What are the largest areas of spending for the federal government?

# data[].attributes.subject
What are the largest areas of spending for the federal government?

# data[].attributes.body
Social Security

Medicare and Medicaid

Defense (Military)

# data[].attributes.headline
What is the difference between Mandatory and Discretionary Spending?

# data[].attributes.subject
What is the difference between Mandatory and Discretionary Spending?

# data[].attributes.body
Mandatory Spending is money the government is required by law to spend on certain programs (like Social Security, Medicare).

Discretionary Spending is money that Congress can adjust annually during the budget process (like defense, education, and transportation).

# data[].attributes.headline
Where does the State receive most of its funding?

# data[].attributes.subject
Where does the State receive most of its funding?

# data[].attributes.body
Where does the State receive most of its funding?

Income taxes, Sales taxes, Federal grants

What percentage of the State Revenue is from General Tax Sources?
About 75% comes from general taxes.

What Sources of Revenue exist that are exclusive to the State level of government, compared to local governments?

State income taxes, Statewide sales taxes, State lotteries, Fees for professional licenses (e.g., doctors, lawyers)

# data[].attributes.headline
What areas of spending were the largest in the state budget? Provide the top 3 Categories:

# data[].attributes.subject
What areas of spending were the largest in the state budget? Provide the top 3 Categories:

# data[].attributes.body
1. Education (public schools and universities)

2. Health and Human Services (including Medicaid)

3. Transportation (roads, highways)

———————————————————————————

What percentage of money was spent on education?
Around 30–40% of the total state budget.

# data[].attributes.headline
Where does the Locality receive most of its funding? Provide the three largest

# data[].attributes.subject
Where does the Locality receive most of its funding? Provide the three largest

# data[].attributes.body
Property Taxes

1. Local Sales Taxes

2. State and Federal Aid (grants and transfers)

——————————————————————————

How much did Allendale earn through Taxes?
$5,291,924

——————————————————————————

What Sources of Revenue exist that are exclusive to the Local level of government, compared to State governments?

1. Property taxes

2. Local service fees (trash collection, water, sewer)

3. Fines and penalties (like parking tickets and court fees)

4. Local business licenses and building permits

# data[].attributes.headline
What areas of spending were the largest in the Local budget? Provide the top 3

# data[].attributes.subject
What areas of spending were the largest in the Local budget? Provide the top 3

# data[].attributes.body
Property Taxes

Sales Taxes

State and Federal Aid

# data[].attributes.headline
How much money was received by Allendale from the State Government?

# data[].attributes.subject
How much money was received by Allendale from the State Government?

# data[].attributes.body
$8,181,463

# data[].attributes.headline
What would likely be counted in the “Recreation and Culture” section of the local

# data[].attributes.subject
What would likely be counted in the “Recreation and Culture” section of the local

# data[].attributes.body
Parks and playground maintenance

Public libraries

Community recreation centers

Museums and cultural events (like local festivals)

Sports leagues and public sports facilities

Public swimming pools

# data[].attributes.headline
What similarities and differences are there between State and Local Sources of
Revenue?

# data[].attributes.subject
What similarities and differences are there between State and Local Sources of
Revenue?

# data[].attributes.body
Top 3 Categories of Local Spending:

1. Education (schools)

2. Public Safety (police, fire departments)

3. Infrastructure (roads, public works)

Money Received by Allendale from State Government:
(Again, this depends on your class’s data — if you send it, I’ll add it here.)

What’s Included in “Recreation and Culture” Section:

1. Parks and playgrounds

2. Libraries

3. Community centers

4. Public festivals and museums

# data[].attributes.headline
What similarities and differences are there between State and Local Spending?

# data[].attributes.subject
What similarities and differences are there between State and Local Spending?

# data[].attributes.body
Similarities Between State and Local Revenue Sources:

Both rely heavily on taxes.

Both can receive grants from the federal government.

Differences Between State and Local Revenue Sources:

States get income tax revenue; locals rely mainly on property taxes.

Local governments collect service fees more often than states.

Similarities Between State and Local Spending:

Both fund education, public safety, and health services.

Differences Between State and Local Spending:

States spend more on highways and healthcare programs.

Local governments spend more on schools, police, fire services, and local parks.

# data[].attributes.body
Fiscal policy is the use of government spending and taxes by Congress and the President to influence the economy.

# data[].attributes.body
1. President Submits a Budget Proposal – The President sends a suggested budget to Congress.

2. Congress Creates a Budget Resolution – Congress reviews and agrees on overall spending goals.

3. Appropriations Committees Write Spending Bills – Committees create bills to fund different parts of the government.

4. Congress Votes and Passes the Bills – House and Senate vote to approve the spending bills.

5. President Signs or Vetoes Bills – The President signs the final budget into law (or vetoes it)

# data[].attributes.body
Expansionary fiscal policy is when the government increases spending or cuts taxes to stimulate economic growth, especially during a slowdown or recession.

Ex:

Sending out stimulus checks to citizens.

Lowering income taxes.

Building new highways, bridges, or schools to create jobs.

# data[].attributes.body
Contractionary fiscal policy is when the government reduces spending or raises taxes to slow down the economy and control inflation.

Ex:

Cutting government programs and services.

Increasing taxes on individuals or businesses.

Reducing government employee wages or benefits.

# data[].attributes.body
Time Lags: It takes a long time for policy changes to actually affect the economy.

Political Pressures: Leaders may make decisions based on politics rather than economic needs.

Increased National Debt: Spending more without raising taxes can make the national debt grow.

Forecasting Problems: Economic conditions can change unexpectedly, making policies less effective.

Crowding Out: Government borrowing can push out private investment by raising interest rates.

# data[].attributes.headline
Definition and Image (How will you remember Monetary Policy)

# data[].attributes.subject
Definition and Image (How will you remember Monetary Policy)

# data[].attributes.body
Monetary policy is how the Federal Reserve (the Fed) manages the money supply and interest rates to promote stable prices, maximum employment, and economic growth.

# data[].attributes.body
Open Market Operations (OMO) are the buying and selling of government securities (like Treasury bonds) by the Fed to influence the money supply.

Ex: Buying bonds = puts more money into the economy (stimulates growth)

Selling bonds = takes money out of the economy (slows down inflation)

# data[].attributes.body
The discount rate is the interest rate the Fed charges banks for short-term loans.

Ex: Lowering the discount rate encourages banks to borrow more and lend more.

Raising the rate discourages borrowing (slows down inflation).

# data[].attributes.body
This is the minimum amount of money banks are required to hold in reserve and not lend out.

Ex: Lower reserve requirement = banks can lend more = more money in the economy.

# data[].attributes.body
Federal Funds Rate (FFR):

The interest rate banks charge each other for overnight loans. The Fed targets this rate to influence economic activity.

IORB (Interest on Reserve Balances):

The Fed pays interest on the money banks keep in reserve. This acts as a floor for the FFR—banks won’t lend money to each other for less than they can earn from the Fed.

Why it matters

If the Fed raises the IORB, banks are more likely to keep money in reserves instead of lending it. If the IORB is low, banks are more likely to lend money, increasing circulation in the economy.

# data[].attributes.body
Problems

Time lags: It takes time for policy changes to impact the economy.

Unpredictable behavior: Businesses and consumers might not respond as expected.

Liquidity trap: In a recession, even low interest rates might not encourage borrowing or spending.

# data[].attributes.headline
What is the largest area of non-defense spending for the Federal Government?

# data[].attributes.subject
What is the largest area of non-defense spending for the Federal Government?

# data[].attributes.body
Social Security.