7.5 Where Does Our Tax Money Go?

What is a deficit?

• Spending more than receiving or earning

• Earning more than spending

• Money after you pay taxes

• Money before you pay taxes

What is debt?

• Borrowed Money

• Earned Money

• Saved Money

• Unearned Income

What is a budget?

• A plan to pay for goods and services.

• A form to complete for filing taxes.

• A form for buying insurance.

• A plan for creating a deficit.

What is the biggest item that the federal government spends money on?

• Social Security

• Roads

• Libraries

• Income Taxes

A tax that takes a higher percentage of money from higher incomes is what type of tax?

• sales tax

• progressive tax

• proportional tax

• regressive tax

When the government spends more money than it receives in revenue, it is referred to as

• debt

• deficit

• national debt

• banrupt

Discretionary spending is spending that

• can be adjusted

• is required by law

• must be approved because it has been requested by the President

Which of the following NOT considered mandatory spending?

• national parks

• Medicare

• medical assistance for low-income families

• Social Security

Spending required by law is known as

• discretionary spending

• mandatory spending

• federal spending

• surplus spending

What is the largest area of State spending?

• K-12 Education

• Roads

• Medicaid

• Parks