3.04 US Govt Income & Expenditures

What is a characteristic of discretionary spending?

• required by law

• covers spending on entitlement programs

• government can make decisions on how to spend the money

• includes spending in categories of education and national defense

State governments use taxes to fund which of the following?

• national defense

• customs administration

• national elections

• highway construction

What is NOT a source of tax revenue of the federal government?

• sales taxes

• excise taxes

• estate taxes

• import taxes

What is the biggest source of revenue for local governments?

• gift taxes

• property taxes

• excise taxes

• import taxes

Why do governments collect taxes?

• to fund programs that promote the health and general welfare of the population

• to discourage immigrants from settling in the country

• to ensure that no one gets too rich

• to create a savings account for the nation's farmers