Essay about Expenditures and Revenues Summary

1140 Words Nov 21st, 2013 5 Pages
Expenditures and Revenues Matrix and Summary
Monya L. Duncan
AJS 522/Finance and Budgeting in Justice and Security
November 25, 2013
Professor Michael Scott

Expenditures and Revenues Matrix and Summary
Introduction
Lynch and Smith, 2004 state that, “A “budget” is a plan for the accomplishment of programs related to objectives and goals within a definite time period, including an estimate of resources required, together with an estimate of the resources available, usually compared with one or more past periods and showing future requirements.” State and local government is truly “big business.” Allison, Freeman, Patton, Shoulders, and Smith, Jr., 2011 state that, “The 50 states and 87,000 local governments within the
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Federal government is in charge of national defense and it can legally print money (Public Budgeting and Financial Management, 2013). Three main sources of federal revenue include individual income taxes, payroll taxes, and corporate income taxes. Almost half of all federal revenue (46 percent) comes from income taxes. The income tax is generally progressive: higher-income households pay a larger share than lower-income households do (Center on Budget and Policy Priorities, 2013). Another 35 percent of revenue comes from payroll taxes, which are assessed on the wage or salary paychecks of almost all workers and used to fund Social Security, Medicare, Hospital Insurance, and unemployment insurance. Corporate income taxes make up about ten percent (10%) of federal revenue, with the remaining nine percent (9%) coming from excise taxes, estate taxes, and other taxes (Center on Budget and Policy Priorities, 2013). The sources of Federal revenue come from the General Fund. The General Fund is used “to account for and report all financial resources not accounted for and reported in another fund. All governments with general government activities will have one General Fund. For most governments, the majority of their general government activities and the largest number and dollar amount of their transactions are reported in the General Fund (Allison, Freeman, Patton, Shoulders, & Smith, Jr., 2011, p. 46). The role
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