Government expenditures

• On social and poverty programs

• To control pollution and big business

• To ensure equal opportunity

• On agriculture and the control of crime

• To increase aggregate demand and stabilize the economy

• Military spending

• Stimulus money to expand our economy

• Government revenue

• Taxes:

• Individual income earners

• Property owners

• Businesses, Consumers

• Government borrowing

• Issues government securities

• Government bonds, treasury notes, and treasury bills

• Government security

• An IOU, a piece of paper:

• The government has borrowed money

• And promises to repay it, plus interest

• At some future point in time

• Sold to: banks, corporations, some foreigners, and people

• Federal Taxes

• Personal income tax

• Social insurance (payroll) taxes

• Corporate (net) income taxes

• Excise taxes

• Estate and gift taxes• Social insurance taxes

• Payroll taxes

• Based on earnings from work

• Usually deducted directly from the paycheck

• Or paid by your employer

• To fund various social insurance programs

• Corporate income tax

• Tax on corporate profits

• Excise taxes

• Taxes applied to the purchase of specific

goods or services

• Estate and gift taxes

• Taxes on estate and gifts

• State taxes

• Sales and excise taxes

• Personal income taxes

• Corporate (net) income taxes

• Licenses

• Property taxes