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$. Money Matters. $. $. Exploring the Money Matters of the Federal Government. Where Does Federal Money Come From?. $. Where Does Federal Money Come From?. $. When the government needs more money, it can’t simply start printing it. It has to come from somewhere!. - PowerPoint PPT Presentation
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EXPLORING THE MONEY EXPLORING THE MONEY MATTERS OF THE FEDERAL MATTERS OF THE FEDERAL
GOVERNMENTGOVERNMENT
Money Money MattersMatters$ $
$
Where Does Federal Money Come Where Does Federal Money Come From?From?
$
Where Does Federal Money Come Where Does Federal Money Come From?From?
$When the government needs more money,
it can’t simply start printing it.
It has to come from somewhere!
Where Does Federal Money Come Where Does Federal Money Come From?From?
$
TAXES!You might have heard people complain
about paying taxes from time to time, but without taxes our government couldn’t run some very important programs that help
people!
Where Federal Money Comes Where Federal Money Comes FromFrom
$The money that the government runs on is raised through taxes.
This money is called REVENUE!
That’s right! The money raised by the
government through taxes is called revenuerevenue!!
There are several types of taxes… $
Where Federal Money Comes Where Federal Money Comes FromFrom
Income
Tax
Social Security
Corporate Income Tax
Excise Tax
Other Taxes
This tax is b
ased on a
percentage of what
you make. The more
you make, the higher
percentage you pay!
This tax is taken to provide retired people
with income they need. In 2010 it was 6.2% of your
total income!
Just like the personal income tax,
corporations must pay income taxes!
These are taxes paid
on certain goods like
alcohol, cigarettes, jewelry, and gas.
This includes estate taxes (when someone dies) and taxes on goods
brought from other countries (tariffs).
Where Federal Money Comes Where Federal Money Comes FromFrom
$
TOTAL: $2,381,000,000,000
Quick Review! Quick Review! $
Revenue is…
A. New “reve”
B. Money that the government raises through taxes
C. Money that the government spends on taxes
D. Money that the government spends over their budget
Where Federal Money GoesWhere Federal Money Goes
The Federal Budget
With all that money (all $2,381,000,000,000 of it) and all the projects in the country to think about, there is only
one thing that can help keep it all straight…
$
Where Federal Money GoesWhere Federal Money Goes$
What’s a BUDGET?
Where Federal Money GoesWhere Federal Money Goes$
BUDGET: A plan for how money is earned and spent
Where Federal Money GoesWhere Federal Money Goes$
FEDERAL BUDGET: A plan for how the government brings in and spends revenue
Where Federal Money GoesWhere Federal Money Goes$
A budget is… A. a type of plan for printing
money. B. something the government
uses to measure things. C. a plan for receiving and
spending money. D. a pet bird.
I see! A budgetbudget is a plan for receiving and spending money.
Federal SpendingFederal Spending
There are several ways the federal government
spends money…
$
Federal SpendingFederal Spending$
These are just broad categories!! Let’s
break them down…
FY 2010: National DefenseFY 2010: National Defense$
Defending our nation is a high priority.
In 2010, more than $650 billion dollars went to
funding military operations, personnel,
supplies, and research!
Total Defense Spending:
$722,000,000,000
FY 2010: Social SecurityFY 2010: Social Security$
When people are retired or disabled, Social
Security helps them get the financial assistance
they need.
Total Social Security Spending:
$724,000,000,000
FY 2010: Income SecurityFY 2010: Income Security$
Other types of financial assistance help people
who are disabled, unemployed, or needy.
These programs provide necessities like housing
and food.
Total Income Security Spending:
$629,000,000,000
FY 2010: MedicareFY 2010: Medicare$
When people retire, they often lose their health
insurance.
The U.S. government has established Medicare to help them pay for health
care! Total Medicare Spending:
$462,000,000,000
FY 2010: HealthFY 2010: Health$
Doctors’ visits, medicines, emergency care… these
are necessities for everyone!
Insurance for the needy, disease research and
control, and children’s health insurance all fall
into this category.
Total Health Spending:
$386,000,000,000
FY 2010: Other SpendingFY 2010: Other Spending$
There are many other categories of government spending. These include:
•Education•Science
•Environment•Development•Transportation
Other Government Spending:
$677,000,000,000
FY 2010 SpendingFY 2010 Spending$
The total estimated budget for 2010 was
$3,600,000,000,000
Hundred
sThousan
dsMillionsBillio
nsTrilli
ons!
Quick Review! Quick Review! $
The federal budget is…
A. The plan for managing and spending state money.
B. The plan for raising government funds.
C. The plan for figuring out who will feed the dog.
D. The plan for managing and spending federal money.
$Two Possible OutcomesTwo Possible Outcomes
After all the revenue is counted and all the spending is tallied,
there are two possible outcomes for the
budget…
$
Deficit Surplus
OR
Two Possible OutcomesTwo Possible Outcomes
The government spends LESS
than it raises in taxes so that
there is money left over!
The government spends MORE
than it raises in taxes so that it must borrow
money!
$Two Possible OutcomesTwo Possible Outcomes
Deficit In a deficit there is no money left over after the budget is laid out.
In fact the government must borrow money to complete the
budget!
Trillions of Dollars
SurplusIn a surplus there is money left
over after the budget is laid out.
$Two Possible OutcomesTwo Possible Outcomes
The government can use the money that is left over for other
projects!
Trillions of Dollars
$This chart shows that there has been a deficitdeficit almost every year since 1980.
Two Possible OutcomesTwo Possible Outcomes
Deficit: Deficit: more money spent than earned
Surplus: Surplus: less money spent than earned
$Fill in the blank:Fill in the blank:
Most of the revenue raised by the government
comes from _________tax.
incomeincome
$
Match the definition to the Match the definition to the term:term:
budgetfederal budgetsurplus
deficit
money left over after the budget is spent
spending more than is raised in taxes
a plan for how money is earned and spent
the plan for bringing in and spending revenue
$
budgetfederal budgetsurplus
deficit
money left over after the budget is spent
spending more than is raised in taxes
Match the definition to the Match the definition to the term:term:
a plan for how money is earned and spent
the plan for bringing in and spending revenue
$
Match the definition to the Match the definition to the term:term:
budgetfederal budgetsurplus
deficit
money left over after the budget is spent
spending more than is raised in taxes
a plan for how money is earned and spent
the plan for bringing in and spending revenue
$
Match the definition to the Match the definition to the term:term:
budgetfederal budgetsurplus
deficit
money left over after the budget is spent
spending more than is raised in taxes
a plan for how money is earned and spent
the plan for bringing in and spending revenue
$REVIEWREVIEW
budgetfederal budgetsurplusdeficit
money left over after the budget is spent
spending more than is raised in taxes
Way to
go!
a plan for how money is earned and spent
the plan for bringing in and spending revenue
$
When the country spends more than it earns that is called
a…
A) Surplus OR
B) Deficit
Choose the right answer:Choose the right answer:
When the country spends less than the amount of money it earns it is called a…
A) Surplus OR
B) Deficit
$Choose the right answer:Choose the right answer:
According to the chart shown earlier, our country usually
has a…
A) Surplus OR
B) Deficit
$Choose the right answer:Choose the right answer:
That’s right!Our country usually spends more than
it earns, so we have a deficit!
$REVIEWREVIEW
