Unit D Taxes & Spending

1. Unit DTaxes & Spending 5.01 Identify Key Aspects of Federal Spending

2. Federal Government Spending • Retirement, disability & health benefits • Farm programs • Courts • Energy programs • Defense • Pollution control • Science & technology programs

3. Federal Government Spending • Mail services • Public education • Prisons • Assistance for lower-income citizens • National Parks • Conservation of natural resources • Interstate highways

4. Federal Government Spending • Housing & urban programs • Aid to foreign countries • Interest on national debt • Unemployment benefits • Printing & minting of money

7. Need of Government Services • Our 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.

8. Need of Government Services • If 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

9. 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.

10. 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/

11. Unit DTaxes & Spending 5.02 Identify Key Aspects of Local State & Spending

12. Local Level Spending • Click 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

13. Local Level Spending • Public Education • Maintenance & building ofstreets and roadways • Libraries • Water and Sewage treatment • Prisons • Special services for lower-income citizens

14. 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

15. State Level Spending • Public Education • Prisons • Direct payments to lower-income citizens • Parks • Public health programs • Libraries • Hospitals

16. State Level Spending • Unemployment benefits • Highways • Consumer protection • Housing & urban programs • Aid to workers • Courts • Assistance to business

17. Conclusion • Where 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?

18. Vocabulary Review • Federal Spending • State Spending • Local Spending • Private Sector • Public Sector