1. Ch. 7, sec. 2

2.  Govt needs $$$$ to function
 This $$$ comes from TAXES
 People pay taxes
 Businesses pay taxes
 Who’s in charge of controlling taxes?
CONGRESS!!
 Which article of the Constitution gives
Congress this power?

3. The Congress shall have Power To
lay and collect Taxes, Duties,
Imposts and Excises, to pay the
Debts and provide for the
common Defense and general
Welfare of the United States

4.  Tax bills must start in the
House of Reps
 Most important tax work
happens in the Ways and
Means Committee
 CLOSED RULE- before 1973
 Only members of Ways and
Means committee could
write, amend, or contribute
to tax bills.
 In 1973, House members of
other committees revolted
and demanded that they be
allowed to get involved in
constructing tax bills

5.  Alltax bills must start in
the House, but Senate
can propose amendments
 Senate tries to change
tax bills often
 Finance Committee deals
with tax bills in the
Senate
 Ways and Means
Committee (House) and
Finance Committee
(Senate) = POWERFUL!

6.  Look at Chart on page 190.
 1.
Which countries collect more than 50% of
their GDP from taxes?
 2. What do these countries have in common?
 3. Where does the U.S. fall on this chart?

7.  Approval of government spending
 Congress must approve before govt.
departments/agencies can spend any money
 Two step process
 1. authorization bill- how much money max may
be given to a certain program
 2. appropriation bill- actually gives the money
to the program- may be less than requested
based on budget constraints

8.  In both the House and the Senate
 Heads of agencies and departments must
testify before the appropriations committees
explaining why they need the money they
have requested
 Heavilyinfluenced by lobbyists trying to
convince committee members to give more
money to certain agencies

9.  Congress cannot control spending on certain
programs
 Social Security
 Interest on national debt
 Social programs (called entitlements)
 TheU.S. govt is legally obligated to pay for
these programs

10.  4. What is Appropriation?
 5. What are the two steps in the appropriation
process?
 6. List some examples of uncontrollable
expenditures that Congress cannot control.
 7. What are the most powerful committees in
the House and Senate that deal with govt.
money issues?
 8. In which house must all tax bills begin?