Federal Budget 101The federal government raise trillions of dollars in tax revenue each year, though thereare many different kinds of taxes. Some taxes fund specific government programs,while other taxes fund the government in general. When all taxes for a given year areinsufficient to cover all of the government’s expenses which is often the case – theU.S Treasury borrows money to make up the difference.Total federal tax revenues in fiscal year 2014 are projected to be 3 trillion. Theserevenues come from three major sources: income taxes paid by individuals, accountingfor 46 percent of all tax revenues; payroll taxes paid jointly by workers and employers,accounting for 34 percent; and corporate income taxes paid by businesses, making up11 percent. There are also a handful of other types of taxes like customs duties and excise taxes that make up much smaller portions of federal revenue. Customs duties are taxes on import , paid by the importer, while excise taxes are taxes levied on specific goods, like gasoline. This pie chart below shows how much each of these revenue sources are expected to bring in during fiscal year 2014.Once they are paid into the Treasury, income taxes and corporate taxes are designatedas federal funds, while payroll taxes become trust funds. Federal funds are general revenues, meaning Congress and the President can decide to spend them on just aboutanything when they conduct the annual appropriations process. But trust funds can beused only to pay for very specific programs. The vast majority of trust fund revenuespay for Social Security and Medicare.
Trang 1UNIT 6: PUBLIC FINANCE
Nguyễn Thùy Dương
Bùi Thị Ánh Nguyệt
Nông Thị Mai Chi
Bùi Thị Thu Hà
Hà Thị Vân Anh
Trang 2Public Finance
(n)
/ˈpʌblɪk/
/ˈfaɪnæns/
The study of how the government (or public) sector pays for (or finances) expenditures through taxes and borrowing
Public finance adapts and applies the fundamental microeconomic theory of markets
to the public sector and government activity.
Federal (adj) /ˈfedərəl/ Connected with national government rather than
the local government of an individual state
New federal regulations have been introduced.
country’s income from taxes, etc and how it will
be spent.
There is more money in the Budget for the Ministry of Education than there is for schools.
by the government on workers' income and business profits.
A carbon tax is a tax on the use of energy.
Insufficient
(adj)
/ˌɪnsəˈfɪʃnt/ of a quantity not able to fulfill a need or
requirement
His salary is insufficient to meet his needs.
Trang 3Customs duties (n) /ˈkʌstəmz/
/ˈdjuːtis/
A government tax on imports or exports They sign a treaty to lower custom duties on trade
between their countries.
/tæksis/
Tax placed on the sale or manufacture of a commodity,typically a luxury item (alcohol ).
Governments impose excise taxes on inelastic goods such as cigarettes,gasoline,alcohol
Mature (v),(adj) /məˈtʃʊə(r)/ (v)To become due for payment or
repayment.
(adj)Due or payable.
My insurance policy matures when i reach 65.
/ˈvæljuː/
The value printed or written on the face,
as of a bill or bond.
The face value of their stock was $1000,although few of them ever sent a message.
Surplus (n),(adj) /ˈsɜːpləs/ An amount or a quantity in excess of what
is needed.
Canada produces a surplus of raw materials.
Creditor (n) /ˈkredɪtə(r)/ A person or commercial enterprise to
whom money is owed.
The property will be sold to pay off their creditors.
Trang 4Deficit (n) /ˈdefɪsɪt/ The amount by which an actual sum is lower than
that expected or required.
They are ready to cut the budget deficit for the next fiscal year.
Debt (n) /det/ A sum of money that somebody owes He had run up credit card debts of thousands of
dollars.
Bond (n) /bɒnd/ A certificate issued by a government or a public
company promising to repay borrowed money at a fixed rate of interest at a specified time.
In the second case bond prices are low and falling
as they would be in inflation.
Treasury
(n)
/ˈtreʒəri/ The government department that controls public
money.
President Bill Clinton appointed Bentsen as Secretary of the Treasury in 1992.
Fund (n) /fʌnd/ A sum of money saved or made available for a
particular purpose.
However, owing to financial crunch, funds would
be raised with private partnership.
Trang 5Where does the money come from?
Federal Budget 101
The federal government raise trillions of dollars in tax revenue each year, though there are many different kinds of taxes Some taxes fund specific government programs, while other taxes fund the government in general When all taxes for a given year are insufficient to cover all of the government’s expenses - which is often the case – the U.S Treasury borrows money to make up the difference.
Total federal tax revenues in fiscal year 2014 are projected to be $3 trillion These revenues come from three major sources : income taxes paid by individuals, accounting for 46 percent of all tax revenues; payroll taxes paid jointly by workers and employers, accounting for 34 percent ; and corporate income taxes paid by businesses, making up 11 percent There are also a handful of other types of taxes like customs duties and excise taxes that make up much smaller portions of federal revenue Customs duties are taxes on import , paid by the importer, while excise taxes are taxes levied on specific goods, like gasoline This pie chart below shows how much each of these revenue sources are expected to bring in during fiscal year 2014.
Once they are paid into the Treasury , income taxes and corporate taxes are designated as federal funds, while payroll taxes become trust funds Federal funds are general revenues, meaning Congress and the President can decide to spend them on just about anything when they conduct the annual appropriations process But trust funds can be used only to pay for very specific programs The vast majority of trust fund revenues pay for Social Security and Medicare.
Trang 6Total federal tax revenues in fiscal year 2014 are projected to be $3
trillion These revenues come from three major sources : income taxes
paid by individuals, accounting for 46 percent of all tax revenues; payroll
taxes paid jointly by workers and employers, accounting for 34 percent ;
and corporate income taxes paid by businesses, making up 11 percent
There are also a handful of other types of taxes like customs duties and
excise taxes that make up much smaller portions of federal revenue
Customs duties are taxes on import , paid by the importer, white excise
taxes are taxes levied on specific goods, like gasoline This pie chart
below shows how much each of these revenue sources are expected to
bring in during fiscal year 2014
2 How much is the Federal government going to collect in tax revenues in fiscal year 2014?
➢ The Federal government is going to collect
$3 trillion in tax revenues in fiscal year 2014.
3 What type of taxes contributes the largest proportion of tax revenues?
➢ Individual income taxes contributes the largest proportion,accounting for 46% of all tax revenues.
Trang 7Once they are paid into the Treasury , income taxes
and corporate taxes are designated as federal funds,
while payroll taxes become trust funds Federal
funds are general revenues, meaning Congress and
the President can decide to spend them on just about
anything when they conduct the annual
appropriations process But trust funds can be used
only to pay for very specific programs The vast
majority of trust fund revenues pay for Social
Security and Medicare.
4 What are federal funds? For what purpose are these funds used?
➢ Federal funds are general revenues coming from income taxes and corporate taxes,which are used to spend on the annual appropriations process.
6 What are trust funds?For what purpose are trust funds used?
➢Trust funds are revenues coming from payroll taxes, which can be used to pay for very specific government programs such as Social Security and Medicare.
Trang 8Federal Budget 101
The federal government raise trillions of dollars in tax revenue each
year, though there are many different kinds of taxes Some taxes fund
specific government programs, while other taxes fund the
government in general When all taxes for a given year are
insufficient to cover all of the government’s expenses which is often
the case – the U.S Treasury borrows money to make up the
difference.
Total federal tax revenues in fiscal year 2014 are projected to be $3
trillion These revenues come from three major sources: income taxes
paid by individuals, accounting for 46 percent of all tax revenues;
payroll taxes paid jointly by workers and employers, accounting for
34 percent; and corporate income taxes paid by businesses, making
up 11 percent
Ngân sách Liên bang 101 Chính phủ Liên bang thu được hàng nghìn tỷ đô la thuế mỗi năm thông qua rất nhiều loại thuế khác nhau Một số thuế gây quỹ cho những chương trình trọng điểm của chính phủ, trong khi một số khác phục vụ cho chính phủ nói chung Khi toàn bộ thuế thu được trong 1 năm nhất định không đủ để bù đắp cho tất cả chi tiêu của chính phủ- vốn là điều xảy ra thường xuyên- kho bạc Mỹ để cải thiện tình hình chỉ còn cách đi vay tiền.
Tổng thuế liên bang thu được trong năm tài khóa 2014 được dự tính
là 3 nghìn tỷ đôla Nguồn thu này đến từ 3 nguồn chủ yếu là: Thuế thu nhập cá nhân,chiếm 46% tổng số thuế thu được; thuế lương bổng được đóng góp bởi người lao động và chủ doanh nghiệp, chiếm 34%; và thuế TNDN do các DN đóng,chiếm 11%.
Trang 9There are also a handful of other types of taxes like customs duties and
excise taxes that make up much smaller portions of federal revenue
Customs duties are taxes on import , paid by the importer, white excise
taxes are taxes levied on specific goods, like gasoline This pie chart below
shows how much each of these revenue sources are expected to bring in
during fiscal year 2014.
Once they are paid into the Treasury, income taxes and corporate taxes are
designated as federal funds, while payroll taxes become trust funds
Federal funds are general revenues, meaning Congress and the president
can decide to spend them on just about anything when they conduct the
annual appropriations process But trust funds can be used only to pay for
very specific program. The vast majority of trust fund revenues pay for
Social Security and Medicare.
Cũng có 1 số ít các loại thuế khác như thuế quan và thuế tiêu thụ đặc biệt đóng góp 1 phần nhỏ hơn vào nguồn thu ngân sách liên bang.Thuế quan là thuế đánh vào hàng hóa nhập khẩu và do hãng nhập khẩu đóng trong khi thuế tiêu thụ đặc biệt lại đánh vào những hàng hóa đặc biệt nhất định như xăng dầu Biểu đồ tròn dưới đây biểu diễn kì vọng về tổng mỗi nguồn thu trên trong năm tài khóa 2014 Khi Kho bạc hoàn thành nghĩa vụ thu thuế, thuế thu nhập cá nhân và thuế thu nhập doanh nghiệp sẽ được coi là quỹ tiền tệ của liên bang trong khi thuế lương trở thành quỹ ủy thác tài sản Quỹ Liên bang là nguồn thu tổng hợp, nghĩa là Quốc hội và Tổng thống có thể quyết định việc chi tiêu chúng vào mục nào khi thực hiện quá trình phân bổ hàng năm Nhưng quỹ ủy thác chỉ có thể được dùng cho những chương trình hết sức đặc biệt Phần lớn nguồn thu quỹ ủy thác dùng cho chương trình trật tự an toàn xã hội và bảo hiểm sức khỏe cho người già trên 65 tuổi.
Trang 10In most year, the federal government spends more money than it takes in
by issuing bonds Anyone can buy Treasury bonds , and, in effect, lend money to the Treasury by doing so According to the Congressional Budget office, the federal government is expected to brrow $616 billion in
1.What does the U.S.Treasury do when revenue from taxes is not enough
to cover all of the government’s expenditures?
➢When revenue from taxes is not enough to cover all of the government’s expenditures, U.S Treasury borrows money by issuing bonds.
Trang 11In most year, the federal government spends more money than it takes
in from tax revenues To make up the difference, the Treasury borrows
money by issuing bonds Anyone can buy Treasury bonds, and, in
effect, lend money to the Treasury by doing so According to the
Congressional Budget office, the federal government is expected to
brrow $616 billion in fiscal 2014 Borrowing constitutes a major
source of revenue for the federal government Down the road,
however, the treasury must pay back the money it has borrowed, and
pay interest as well.
Vay mượn Hầu hết các năm, chính phủ Liên bang chi nhiều tiền hơn tiền thu được từ nguồn thuế Để bù đắp phần còn lại, kho bạc mượn tiền bằng cách phát hành phiếu Bất
kỳ ai cũng có thể mua trái phiếu kho bạc và tiền thực
tế, kho bạc vay là làm như vậy Theo văn phòng ngân sách Quốc hội ; chính phủ Liên bang được kỳ vọng sẽ vay được 616 tỷ đô la trong năm tài khóa 2014 Khoản vay này tạo ra nguồn thu chủ yếu cho chính phủ liên bang Tuy nhiên trong tương lai, kho bạc phải trả lại số tiền đã vay này, và trả cả lãi suất.
Trang 12How Does the Ferderal Government Borrow?
To finance the debt, the U.S Treasury sells bonds and other types of securities.(Securities is a term for a variety of financial assets) Anyone can buy a bond or other Treasury security directly from the Treasury through its website, treasurydirect fov, or from banks or brokers When a person buys a Treasury bond, she effectively loans money to the federal government in exchange for repayment with interest at a later date
Most Treasury bonds give the investor-the person who buys the bond-a pre-detemined fixed interest rate Genetally, if you buy a bond, the price you pay is less than what the bond is worth That means you hold onto the bond until it mature; a bond is mature
on the date at which it is worth its face value For example, you may buy a $100bond today and pay ony $90 Then you hold it for five year, at which time it is worth $100 You also can sell the bond before it matures
8 By what way does the Treasury borrow money?
➢The Treasury borrows money by selling bonds and other types of securities
Trang 13How Does the Ferderal Government Borrow?
To finance the debt, the U.S Treasury sells bonds and other types of securities.
(Securities is a term for a variety of financial assets) Anyone can buy a bond
or other Treasury security directly from the Treasury through its website,
treasurydirect fov, or from banks or brokers When a person buys a Treasury
bond, she effectively loans money to the federal government in exchange for
repayment with interest at a later date.
Most Treasury bonds give the investor-the person who buys the bond-a
pre-detemined fixed interest rate Genetally, if you buy a bond, the price you pay
is less than what the bond is worth That means you hold onto the bond until
it mature; a bond is mature on the date at which it is worth its face value For
example, you may buy a $100bond today and pay ony $90 Then you hold it
for five year, at which time it is worth $100 You also can sell the bond before
it matures.
Làm thế nào chính phủ liên bang có thể vay ?
Để huy động vốn vay , kho bạc Mỹ bán trái phiếu và các loại chứng khoán nợ khác (chứng khoán nợ là một loạt các tài sản tài chính) Ai cũng có thể mua trực tiếp trái phiếu hoặc các loại chứng khoán nợ khác từ kho bạc trên website: treasurydirect.gov, hoặc từ phía các ngân hàng, hoặc nhà môi giới Khi một người mua trái phiếu kho bạc, người đó đã cho chính phủ liên bang vay một khoản tiền với điều kiện chính phủ thực hiện nghĩa vụ trả gốc lẫn lãi sau này.
Nếu hết trái phiếu kho bạc cho nhà đầu tư – đối tượng mua trái phiếu – biết trước lãi suất cố định Nói chung là, nếu bạn mua trái phiếu, số tiền chúng ta bỏ ra sẽ ít hơn giá trị thật của trái phiếu Điều đó có nghĩa là chúng ta giữ trái phiếu đến kì hạn thanh toán, khi mà trái phiếu đạt đến giá trị thật Ví dụ, bạn bỏ ra $90 để mua trái phiếu giá
$100 Và sau đó bạn giữ trong 5 năm, khi đó giá của trái phiếu sẽ là $100 Bạn cũng
có thể thực hiện giao dịch trái phiếu đó ra bên ngoài trước kì hạn