P.572-573 chapter 20 review

What is the deadline for filling individual income tax returns?
April 15th
Identify three institutions that are exempt from the federal income tax?
Churches,unions,non profit organizations
What are three responsibilities of the Internal Revenue Service?
Collect taxes, Audit suspect returns, and other problem documents, Administers the Internal Revenue Code
What are four types of taxes that the federal government collects?
Individual Income Taxes
Corporate Income Taxes
Social Insurance Taxes
Excise Taxes
What executive agency is charged with preparing the federal budget?
Office of Management and Budget
Why are federal securities such as bonds popular with investors?
Because they are safe and the interest on them is not subject to taxation.
What was the goal of the Grammy-rudman holdings act?
The act aimed to curtail the US deficit and limit government spending
What factors make it difficult for congress to cut spending?
Popular demand for public welfare programs, large numbers of entitlements, increasing interest payments
Identify state and local uses of intergovernmental revenues?
Road repair, schooling, police training, public programs
Why has the United States been unable to balance the national budget most of the time beginning in the 1930s
Because the government often does not want to balance the budget because they belief deficit spending will aid the economy
What kinds of banks are members of the federal reserve system?
All of the large banks in the country are part of the Fed
Why would business groups support protective tariffs?
Because protective tariffs make imports more expensive and, as such, give a boost to domestically produced goods
Why must the federal reserve board of governors operate free of pressure from the president or congress?
Political pressure would drastically increase the potential for corruption and would also distract the Fed governors from their actually meaningful affairs and responsibilities
Use a graphic organizer like the one below to show two measures the federal government could take if the national debt seemed to be growing too fast?
——->make spending limits
——->Reduction of spending