Date: April 5, 2016 Topic: Economic Policy – Fiscal Policy Aim: How does fiscal policy impact the United States? Do Now: Handout.

Baker v. Carr (1960) Baker v. Carr (1960) Does the Supreme Court have jurisdiction over issues of legislative apportionment? Does the Supreme Court have jurisdiction over issues of legislative apportionment? The court does have jurisdiction over these issues. The Court can hear these cases. The court does have jurisdiction over these issues. The Court can hear these cases. Wesberry v Sanders (1964) Wesberry v Sanders (1964) State of Georgia’s apportionment scheme diluted a persons right to vote. *US Congressional Districts. State of Georgia’s apportionment scheme diluted a persons right to vote. *US Congressional Districts.vote. Reynolds v. Sims (1964) Reynolds v. Sims (1964) Established equal voting districts and “one person one vote” doctrine (one persons vote as equal to another). *State districts. Established equal voting districts and “one person one vote” doctrine (one persons vote as equal to another). *State districts.

Past Economic Policies  Laissez-Faire “hands off” “leave it alone”  Laissez-Faire – “hands off” “leave it alone”  Keynesian Economics – the government should manage the economy when spending money in a recession.

National Debt vs. The Deficit.  National Debt all the money that the United States owes.  National Debt – all the money that the United States owes. National Debt National Debt  Deficit – the amount overspent in a year. THE DEBT CLOCK

Fiscal Policy  Fiscal Policy  Fiscal Policy – policies where changes are made in the governments methods of raising money and spending it – taxing and spending policies.  Where does the money come from?  1.) Federal Income Taxes  a.) largest single source of revenue – 45% of the national governments total revenues.  b.) Progressive Tax – the higher the income, the higher the tax rate.  c.) Corporations pay income taxes too.  d.) Complex tax code – simplify it!  2.) Social Insurance TaxesTaxes  Employers employ these taxes to their employees who then become eligible when they get older.  3.) Borrowing  The government often borrows money to fund its own taxpayers.  Deficit Spending – when the government spends more money than it takes in within a fiscal year

 4.) Other Taxes  A.) Excise Taxes – levied on specific goods and services like alcohol and tobacco.  Excise taxes are regressive taxes – are the same for everyone.  B.) Estate Taxes – money and property that are inherited when an individual dies.  C.) Customs, duties, and tariffs levied on goods imported to the United States.