Unit D Taxes & Spending

Unit DTaxes & Spending

5.01

Identify Key Aspects of Federal

Spending

Federal Government Spending

Retirement, disability & health benefits Farm programs Courts Energy programs Defense Pollution control

Science & technology programs

Federal Government SpendingMail services Public education

Prisons Assistance for lower-income citizens National Parks Conservation of natural resources Interstate highways

Federal Government Spending

Housing & urban programs

Aid to foreign countries Interest on national debt Unemployment benefits Printing & minting of money

Need of Government ServicesOur history shows that the American people are suspicious of too much government involvement in their lives. We understand the need for government in such things as national defense, police, fire protection, road building, and public schools. However, given the choice of the private sector (business) or the public sector (government) to perform a function, we tend to choose the private sector.

Need of Government ServicesIf this true, how do we explain the tremendous growth of government? In 1929, less than 10 percent of the nation's gross national product was spent by all levels of government, or the public sector. By 1950, the percentage had more than doubled. By 1986, the public sector accounted for more than 35 percent. It is clear that government has grown very rapidly. As a result, we are making relatively more decisions as citizens and fewer decisions as consumers

Reasons for the Increase in Government Spending

The largest increase in government spending since 1964 has been for human services.

Human services include health, education, safety, welfare, and community development.

Funds for these services have been distributed directly to individuals or, more often, through state and local governments.

Reasons for the Increase in Government Spending

Spending for human services has more than doubled as a percentage of total government spending.

The following web address illustrates federal spending:

http://www.federalbudget.com/

Unit DTaxes & Spending

5.02Identify Key Aspects of Local State &

Spending

Local Level SpendingClick the following link to view budget information for the City of Asheville:

http://www.ashevillenc.gov/uploadedFiles/Departments/Finance/Budget%20Summary.pdf

Click the following links to view budget highlights for Buncombe County:

http://www.buncombecounty.org/common/finance/BudgetInBrief_FY07.pdf Ad Valorem Tax is another name for property taxes

Local Level SpendingPublic Education Maintenance & building of streets and roadways Libraries Water and Sewage treatment Prisons Special services for lower-income citizens

State Level Spending

Click the following link to view budget information for the state of North Carolina:

http://www.osbm.state.nc.us/files/pdf_files/charts/2005-06_GF_Budget.pdf http://www.osbm.state.nc.us/files/pdf_files/charts/2005-06_Budget_Summary.pdf

State Level SpendingPublic Education Prisons Direct payments to lower-income citizens Parks Public health programs Libraries Hospitals

State Level SpendingUnemployment benefits Highways Consumer protection Housing & urban programs Aid to workers Courts Assistance to business

ConclusionWhere does the Federal Government get the vast majority of its funds?Where do local governments get the majority of their funds?Where does the state receive the majority of its funding?What budget items are funded by local, state, and federal funds?Why has their been such an increase in public services spending?

Vocabulary ReviewFederal SpendingState SpendingLocal SpendingPrivate SectorPublic Sector