Bureaucracy & Financing

Bureaucracy

Bureaucracy: Large, complex administrative

structure which handles everyday business of the federal government

Hierarchical authority Job SpecializationFormalized Rules

Executive DepartmentsEach Department headed by a

SecretaryCabinet

Informal advisory board to the President

Traditionally made up of heads of 15 executive departments

Departments of State, Justice, Defense, Education, Treasury, etc.

Executive Office of the President

The EOP is staffed by the President’s most trusted advisors

White House Office “Nerve Center” Chief of Staff, Press Secretary, assistants to

President National Security Council

Advises President on domestic, foreign, and military issues that relate to security

VP, Secretary of State, Secretary of Defense, head of CIA & FBI

Independent Agencies Independent Agencies – Created

outside the Executive branchDo not fit well within departments

Independent Executive AgenciesNASA, EPA, etc.

Independent Regulatory CommissionsThe Fed, etc.

Government CorporationsFDIC, US Postal Service, etc.

Financing the Government

Types of Taxes Progressive Taxes

Tax increases based on an individual’s ability to pay

Corporate Taxes – pay according to its profit for year

Income Taxes – #1 source of revenue http://www.moneychimp.com/features/tax_brackets.htm

Tax Return – declaration of income & deductions - IRS by April 15th

Types of Taxes

Regressive TaxesTaxes levied at a flat rate without regard

to the level of a taxpayer’s income or ability to pay

Sales tax – 8.25%

Types of Taxes

ExciseTaxes on the production, sale, or

consumption of specific goods

“Luxury” or “Sin” taxesAirline tickets, tires, firearms, tobacco,

beer, gambling

Types of Taxes

Estate taxes (Death taxes)Paid according to a person’s wealth,

land, estate at their death

Gift taxesTax gifts over $12,000 a year (to keep

people from giving away estate)

Federal Spending

Each branch within the government receives a portion

Executive Departments spend the most

President submits a budget to Congress each year for approval Must be approved by whole Congress