constituent, delegate duty, trustee duty, incumbent, pork, standing committee, subcommittee, select committee or special committee, joint committee, conference committee, appropriations, joint resolution, casework, term limits
Chapter 11 Summary
Congress is the legislative branch of the national government. Its structure and powers are largely defined by the Constitution. As with all legislatures in a representative democracy, Congress is responsible for making laws and serving the people’s needs.
Legislators and constituents. Most legislators seek to represent the interests of their constituents while also relying on their own independent judgement. In Congress, two senators represent every state. The number of representatives depends on the state’s population.
Organization of Congress. The House and the Senate are organized by political parties. Much of the work or turning a bill into law takes place in standing committees and subcommittees, Members of Congress rely on staff to help with their lawmaking and constituent duties.
Powers of Congress. The Constitution gives Congress specific powers, which over time have been stretched under the Elastic Clause. In addition, members of Congress use their office to help constituents solve problems involving federal government agencies.
State legislators. As a rule, state legislators spend less time on the job, receive lower pay, and have fewer staff than their counterparts in Congress. Unlike members of Congress, some state legislators are subject to term limits.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
Understand how Congress is organized and explain how power is distributed and shared.
Language Objectives:
Understand, learn, and use new vocabulary that is introduced and taught directly through informational text and direct instruction.
Identify and/or summarize main ideas, facts, supporting details, and opinions in an informational and/or practical selection.
Read and synthesize information found in various parts of charts, tables, or diagrams to reach supported conclusions.
Learning Target:
Students will identify and explain the enumerated powers of the legislative branch and the checks provided by the Constitution to that branch on the other branches of government.
The major function of Congress is to enact legislation. Yet the role it plays in developing legislation depends on the type of policy involved. Because of its divided chambers and committee structure, as well as the concern of its members with state and district interests, Congress, through its party leaders and caucuses, only occasionally takes the lead on broad national issues; Congress instead typically looks to the president for this leadership. Nevertheless, presidential initiatives are passed by Congress only if they meet its members’ expectations and usually only after a lengthy process of compromise and negotiation. Congress is more adept at handling legislation that deals with problems of narrow interest. Legislation of this sort is decided mainly in congressional committees, where interested legislators, bureaucrats, and groups concentrate their efforts on issues of mutual concern.
A second function of Congress is the representation of various interests. Members of Congress are highly sensitive to the state or district they depend on for reelection. They do respond to overriding national interests, but for most of them local concerns generally come first. National or local representation often operates through party representation, particularly on issues that divide the Democratic and Republican parties and their constituent groups, which is increasingly the case.
How Legislators See Their Jobs
Members of Congress have two distinct but interrelated jobs. They must represent their constituents in their districts or states, and they must perform their constitutional duties as national legislators. They must try to serve the voters back home while making laws for the nation as a whole. Legislators see themselves as fulfilling one of two roles: that of a delegate or that of a trustee.
Lawmakers who view themselves as delegates seek to represent their districts by responding directly to the wishes or needs of their constituents. They act as they think the people who voted them into office want them to act. This role is often embraced enthusiastically by first-time lawmakers who are new to the legislative process.
Lawmakers who see themselves as trustees try to represent their districts by exercising their best independent judgement. These are more experienced lawmakers who recognize that their constituents have conflicting needs that cannot always be met. In making decisions, these lawmakers try to serve the larger interests of their districts, assuming that their constituents trust them to do the right thing.
Most legislators combine these two roles. They may act as a delegate on issues clearly linked to the needs of their home districts. But on more general issues, or on issues over which there is much disagreement, they may take on the role of trustee
Congress’s third function is oversight—the supervision and investigation of the way the bureaucracy is implementing legislatively mandated programs. Although oversight is a difficult process, it is an important means of legislative control over the actions of the executive branch.
Powers of Congress
Article I of the Constitution states that Congress shall have all legislative powers. The specific powers given to Congress include the authority to
levy and collect taxes.
borrow money.
regulate interstate and foreign commerce.
coin money.
declare war.
The Constitution also authorizes Congress to “make all laws which shall be necessary and proper” for carrying out those powers. Through this elastic clause, the framers gave Congress the ability to stretch its listed powers to deal with future needs that could not be anticipated when the Constitution was written.
These implied powers must be linked to enumerated powers and sometimes the link is weak. For example, Congress has enacted laws designed to limit air and water pollution based on its power to regulate interstate commerce.
Occasionally, the Supreme Court has held that Congress has stretched the Elastic Clause beyond the breaking point, This happened in the 2000 case United States v. Morrison. At issue was whether Congress had exceeded its authority to control interstate commerce when it passed the Violence Against Women Act in 1994. The act gave women who had been abused the right to sue their attackers in federal court. The Supreme Court struck down the act as unconstitutional.
Congress Checks Other Branches
Congress was also given powers to check the other two branches of government. These checking powers include the following:
Oversight. Congress oversees executive agencies to make sure they carry out the laws it has passed.
Confirmation. The Senate must confirm, or approve, key officials appointed to office by the president.
Impeachment. The House of Representatives can impeach a federal official, including the president, by voting to accept a formal accusation of wrongdoing against that person. The Senate then conducts a trial of the impeached official and votes on whether to remove him or her from office.
Ratification. The Senate must ratify, or approve, all treaties negotiated by the president before they become law.
Override. Congress can vote to override, or reverse, a president’s veto of legislation.
Amendment. Congress, through a vote of both chambers, can propose an amendment to the Constitution. It can use this power to change the Constitution, even if it means reversing a ruling of the Supreme Court.
Enacting Laws
The checking powers of Congress also apply within the legislative branch. Both chambers of Congress must agree on a bill before it can become law. That means that either chamber can amend or reject a bill offered by the other chamber.
The process of crafting bills that both chambers can agree on is complex and time consuming. Bills may be introduced in either chamber of Congress. Upon introduction, they are labeled with initials H.R. for the House or S. for the Senate. They also receive a number, which represents the order in which the bill was introduced in that chamber. For example, the first bill introduced in the House during the 117th Congress in 2022 was labeled H.R.1 and the first bill in the Senate was S.1.
Most new bills are sent to a committee, where they are studied and revised. If the bill survives in committee, it is sent back to the House or Senate floor for debate and a vote. Bills that pass one chamber are sent to the other chamber to go through the process again.
A bill often gets amended when it passes through the other chamber. The two versions of the bill – the House version and the Senate version – go to a conference committee to have their difference reconciled. The House and Senate the vote on the final version of the bill. If it passes, it goes to the president for approval. If the president signs the bill, it becomes law.
This process may seem relatively simple and straightforward. Turning a bill into law requires hard work, patience, and compromise. Most bills do not survive. In 2022, 10,000 bills were introduced in Congress. Only 362 passed into law.
Levy Taxes
Some of the bills that go through Congress are tax bills. The power to tax is one of the most important powers of Congress. Unlike other legislation, tax bills can only originate in the House. Article I, Section 7 of the Constitution says that “all bills for raising revenue shall originate in the House of Representatives.”
Originally, government revenue came mainly from taxes on goods, such as imported products. Today, the federal government relies largely on income taxes, which are collected by the Internal Revenue Service. Congress makes tax policy and oversees the work of the IRS.
Although taxes may seem a burden, they finance many of the government programs and services that Americans depend on. For example, without federal taxes, there would be no national highway system, no national system of law enforcement, no national funding for public education, and no national defense system.
Power of the Purse
Congress has another important financial power: the power to spend. Article I, Section 9 of the Constitution says, “No money shall be drawn from the Treasury, but in consequence of appropriations made by law.”
Appropriations are public funds allocated for a particular purpose by a legislature. To fund any federal project, the government needs money, and Congress must appropriate this money. Acting in this capacity, Congress is said to have the “power of the purse.”
Declaring War
Another key power of Congress granted under the Constitution is the power to declare war. Although the president is commander in chief of the armed forces, the president also has constitutional duties related to military conflict. Congress and the president share war making powers.
This sharing of power sometimes caused tension between the legislative and executive branches. The president has not hesitated to send troops into combat before obtaining the permission of Congress. The president has sent soldiers into action more than 200 times. Yet Congress has formally declared war only five times. The last declaration was in 1941, brought the United States into World War II. Since then, Americans have fought in lengthy, undeclared wars in Korea, Vietnam, and most recently, Iraq.
Congress has sometimes resisted the president’s war making efforts. During the Vietnam War un 1973, Congress passed the War Powers Act to reassert its authority. This law requires the approval of Congress for any overseas troop deployment lasting longer than 90 days.
In such cases, Congress can stop short of issuing a formal declaration of war. Instead, it can authorize military action by passing a joint resolution, an official statement from both chambers of Congress. Like a regular bill, a joint resolution has the power of law once the president signs it. Congress used a joint resolution in October 2002 to authorize the use of military force against Iraq.
Casework
In addition to their legislative duties, members of Congress must find time for casework. Casework is helping their constituents solve problems that involve the federal government.
Citizens often need assistance in dealing with the complexities of federal agencies. For example, they may not have received their Social Security checks, or they may be having problems getting a passport in time for foreign travel. Legislators are often able to use their authority to connect constituents to someone in government who can solve their problems.
Casework involves a great variety of problems. It is a burden for many legislators, but it is a key part of representative government. Helping constituents is also good politics. Voters often reelect legislators who have paid attention to their needs. Members of Congress know this and have found ways to do casework while fulfilling their legislative duties. They open offices in their districts and hire staff to answer constituents’ questions. They also work on other levels to help their districts.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
The U.S. Senate has a total of 100 seats, two for each state. The House of Representatives has 435 seats, with each seat representing one congressional district. The number of seats in the House was fixed by law in 1911 and can be changed by Congress at any time.
The framers of the Constitution viewed Congress as the first branch of government. For that reason, the Constitution addresses the structure and powers of Congress first.
The Constitution establishes Congress as a bicameral legislature consisting of the House of Representatives and the Senate. Both chambers serve as lawmaking bodies, but they are different in many respects.
The House, with its larger size and more frequent elections, act as the people’s body. It was meant to reflect the more volatile, democratic tendencies in American society. The Senate, whose members serve longer terms and were originally chosen by state legislatures, was meant to be a more elite chamber that would act as a steadying influence on Congress.
In 1913, with the ratification of the Seventeenth Amendment, the Senate became elected directly by the voters instead of state legislatures. Unlike the bicameral legislatures in most countries, the two houses of Congress are equal in power. Even so, the houses are clearly different. The Senate serves to “cool” legislation coming from the House.
Leadership Roles
Congress is a fragmented institution. It has no single leader; rather, the House and Senate have separate leaders, neither of whom can presume to speak for the other chamber. Congress base its organization on the two major political parties. The principal party leaders of Congress are the Speaker of the House and the President of the Senate.
In each chamber, the majority party – the one with the most seats – controls the agenda. Its members take the top leadership positions. The minority party can have a significant impact in Congress by choosing able leaders. There are three leadership roles in the House: the Speaker of the House, the majority and minority leaders, and the majority and minority whips.
The Speaker of the House has more power and prestige than any other leader in Congress. The speaker is nominated by the majority party and wins the position through a vote of the entire House. The speaker presides over the House, assigns bills to committee, and appoints members to special committees and commissions. The speaker’s most important function may be deciding what bills will be debated by the full House and when. The power of the Speaker of the House is the power of scheduling.
In the House, the majority and minority leaders are elected by their respective parties. Their duty is to manage legislation on the House floor. The majority leader is the majority’s party second in command. The minority leader is the minority party’s overall leader and main strategist.
The House majority and minority whips are assistant floor leaders. They are responsible for keeping the leadership informed and persuading party members to vote along party lines.
Leaders in the Senate have similar roles to those in the House. They are responsible for the functioning of their chamber. They work to build support for legislation that advances their party’s core politics. The leadership positions in the Senate are the President of the Senate, the majority and minority leaders, and the majority and minority whips.
The President of the Senate is the official presiding officer of this body. The Constitution assigns this position to the Vice President of the United States. The vice president appears on the Senate floor for ceremonies or to break a tie vote.
The President of the Senate pro tempore is the senior senator of the majority party and may preside over Senate sessions when the vice president is not there. Normally neither the vice president nor the vice president pro tempore presides. Most often other members of the majority party take turns presiding as the Senate conducts its day-to-day business.
The Senate majority leader serves as spokesperson for the party that holds the most seats in the Senate. This leader lacks the Speaker of the House’s ability to single handedly make things happen on the floor. The Senate majority leader must work with party members and the minority leader to move legislation to a vote.
The Senate minority leader helps shape minority party policy and devise strategies for stopping majority sponsored bills opposed by the minority party. The minority leader also works with the majority leader to schedule business on the Senate floor.
The Senate majority and minority whips are assistant floor leaders who stand in for the majority and minority leaders. Their other duties vary, depending on the needs of their party leaders.
Committee System
The main task of each chamber in Congress is to make laws. The committees of Congress perform most legislative activity. The majority party in both the House and Senate gets to select the leaders of that body, control the flow of legislative work, and appoint the chairs of all the committees.
Individual legislators do not have the time or expertise to thoroughly understand all the bills that come before Congress. They rely on the division of labor, entrusting most of the work of lawmaking to various committees. Congress has five kinds of committees, some are permanent and others are temporary.
House and Senate standing committees are permanent committees that handle most legislative business. Each standing committee has its own broad area of responsibility, such as homeland security or foreign affairs. In addition to studying legislation, standing committees have another key duty: they gather information through hearings and investigations. Committee hearings are one way for Congress to monitor the policies of government agencies. Committee members can ask officials, face to face, to explain their agency’s action.
Most standing committees also have several smaller subcommittees. The subcommittees do most of the work of reviewing proposed legislation. The vast majority of bills introduced in Congress each year “die” in committee. Less than 10 percent of proposed bills become law.
The House and Senate sometimes form a select committee or special committee to investigate specific problems. These committees are usually temporary. Although they do not review legislation, special and select committees nay make recommendations to Congress based on their investigations.
Congress has a small number of permanent joint committees made up of members of both the House and Senate. Joint committees deal with issues of interest to both chambers. For example, the Joint Committee on the Library oversees the operations of the Library of Congress. The Library of Congress is the research arm of Congress and home to the world’s largest library.
A conference committee is a temporary kind of joint committee. It is formed to iron out differences between two versions of a bill passed by the House and Senate. Both chambers must pass identical versions of a bill for it to become law.
Staff and Support Agencies
Lawmakers do not face the rigors of committee work alone. You will notice the people sitting behind the committee members. These people are employed as Congressional staffers or staff members. Some work for the committee at large. Others belong to a member’s personal staff.
The House and Senate employ around 1,000 committee staffers to support the work of their various committees. This staff includes clerical workers as well as experts in the subject area of a particular committee. The number of personal staff a Congress member has varies. Representatives average about 16 staffers apiece, while senators average about 40 staff members each. Personal staff members perform a variety of tasks, from answering constituents’ questions to writing speeches and drafting bills.
Several support agencies provide Congress with the information it needs to do its job. The Congressional Research Services helps by researching policy questions. The General Accountability Office checks the financial accounts of government programs. The Congressional Budget Office provides House and Senate budget committees with data and analyses that aid the budget process. It also provides other committees with cost estimates related to proposed legislation.
Members of Congress have also formed a number of unofficial groups to pursue particular goals and interests. There are more than 300 informal caucuses in Congress. Often members of a caucus need not belong to the same party or even the same chamber. The National Women’s Political Caucus is a bipartisan group of women in Congress. The Congressional Black Caucus is open to all African American members of Congress. Groups like the Climate Change Caucus and the Congressional Nanotechnology Caucus attract lawmakers who have an interest in specific subjects.
Other unofficial groups have formed within one political party or chamber of Congress. The Blue Dog Coalition is a group of conservative and moderate House Democrats. The House Tea Party Caucus brings together House Republicans dedicated to advancing a conservative agenda.
State Legislature
State legislatures have much in common with Congress. Like Congress, they make laws and represent voters in each state. All states have a bicameral legislature, except for Nebraska. Each bicameral legislature is made up of an upper and a lower house. These houses are organized along party lines and do much of their business through committees, just like Congress. However, state legislatures differ from Congress in a number of ways.
State legislators meet for less time, have smaller staffs, and receive lower salaries than members of Congress. State legislatures can be divided into three types: citizen, professional, and hybrid. These types are based mainly on the amount of time their members spend on the job.
In citizen legislatures, members spend about half of their time as lawmakers. Citizen legislatures are commonly found in states with small populations.
Professional legislatures are legislatures whose members are full-time lawmakers. Professional legislatures are more common in states with larger populations.
Hybrid legislatures fall between the previous two types. Their members spend about two-thirds of their time on legislative business.
Of these three types, professional legislatures are the most like Congress. The workload of lawmakers in professional legislatures pales in comparison with that of members of Congress. Most sessions of Congress run from January into December. Members of Congress spend well more than 300 days a year performing legislative duties. State legislators, even professional ones, work much less.
Staff size is another difference. Professional state legislators average around 9 staff assistants each, compared with 16 in the House and 40 in the Senate. Citizen legislators may have just one assistant.
Compensation is also much lower at the state level. Members of Congress earn $174,000 annually. Among the states, California paid the highest legislative salary at $119,702 annually. Most states paid far less. New Hampshire offered the lowest salary, paying its lawmakers just $100 per year.
Another key difference between state legislatures and Congress is the presence of term limits. Unlike Congress, where legislators may serve an unlimited number of terms, many states limit the number of years legislators can remain in office.
Supporters of term limits say that turnover in a legislature is beneficial. It eliminates career politicians who lose touch with their constituency. New faces brings new ideas. New legislators bring new energy to government and are more responsive to the will of the people.
Opponents of term limits argue that such limits are undemocratic. By preventing some incumbents from running for reelection, term limits restricts the choices available to voters. They also remove experienced lawmakers from office, which may reduce a legislature’s effectiveness and can devastate a legislature.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
Most legislators start out in local politics. They may have won election to the city council and moved from there to the state legislature. As they gather more experience, they may try for a seat in the House of Representatives or the Senate. As lawmakers move up on the legislative path, they serve a widening group of constituents. However, before attaining any of these positions, a person must first meet certain qualifications.
The Constitution establishes formal qualifications for members of Congress. Members of both the House and Senate must be residents of the state in which they are elected. They also need to meet minimum age and citizenship requirements. House members must be at least 25 years old and a U.S. citizen for at least seven years. Senators must be at least 30 years old and a U.S. citizen for at least nine years.
In addition to the formal requirements for office, lawmakers must also meet certain informal qualifications. These are the qualities and characteristics that people look for in their public officials.
The formal qualifications at the state and local levels are less stringent. Young adults not long out of high school may qualify for elections to school boards, town councils, or state legislatures.
These informal qualifications have changed over the years. The framers of the Constitution had in mind a certain set of high-minded and highly educated people to lead the country. James Madison referred to them as a “chosen body of citizens.” They were lawmakers who were white, male, and middle to upper class. Women and members of minority groups began to challenge this idea in the 1960s and 1970s.
Beyond race and gender, at least two other informal qualifications still exist: education and occupation. Most legislators today have a college degree, and many have advanced degrees. The majority also have a background in business or law.
Members of Congress, once elected, are likely to be reelected. Many legislators stay in office as long as voters keep reelecting them. Other legislators would like to serve longer, but term limits force them to leave office after a certain number of years. Term limits affect only state legislators. The Supreme Court in 1995, ruled that the terms of members of Congress cannot be limited except by a constitutional amendment.
Lawmakers who run for office term after term stand a good chance of being reelected. Representatives running for another term in the House have won reelection approximately 90 percent of the time. Incumbent senators have won their reelections around 80 percent. Incumbents clearly have a number of advantages over their challengers.
Incumbents have name recognition. Voters are familiar with incumbents and tend to trust them more than unfamiliar challengers. Voters see incumbents in news coverage looking effective and authoritative.
Incumbents can use the benefits of their office resources – staff, stationary, mailing privileges, and travel allowances – to keep in touch with voters in their districts.
Incumbents find it easier to raise campaign funds. Individuals and organizations give money in larger amounts to incumbents than to challengers.
Incumbents have bragging rights. They can point to federally funded projects – from roads and bridges to defense contracts – that they have won for their districts. Such projects are known as pork, because the money for them comes from the federal pork barrel or treasury. Legislators who secure large amounts of pork for their home districts are admired for “bringing home the bacon.” Challengers typically lack such bragging rights.
These advantages do not mean that incumbents always wins. House members gain a greater advantage from these activities than do senators, whose larger constituencies make it harder for them to build close personal relations with voters and whose office is more likely to attract strong challengers.
Incumbency does have some disadvantages. Members of Congress must take positions on controversial issues, may blunder into political scandal or indiscretion, must deal with changes in the electorate, or may face strong challengers; any of these conditions can reduce members’ reelection chances. If voters think that Congress has failed to deal with important issues, they may respond by voting incumbents out of office at the next election.
Gerrymandering is a way politicians draw boundary lines for legislative districts in ways designed to keep one party or the other in power in that particular district. In the last 10 years, 78% of the seats in the U.S. House of Representatives, which is almost four out of every five members of Congress, did not change party hands even once. In California, with 53 seats, the most in the nation, incumbents were kept so safe that only one of those seats changed party control in the past decade. David Wasserman, redistricting expert for the nonpartisan Cook Political Report, says only 20 races for Congress were expected to be tossups in the 2012 election. That’s only 20 out of the 435 seats in the House. “In general elections, it’s almost rigged,” he said. And that may be part of the reason why Congress is so polarized.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
fiscal year, balanced budget, budget surplus, federal deficit, national debt, deficit spending, impoundment, budget resolution, budget proposal, budget cycle, continuing resolution, budget crisis, Tax Freedom Day, individual income tax, social insurance taxes, corporate income tax, excise taxes, progressive tax, regressive tax, mandatory spending, entitlement, discretionary spending, earmarks, flat tax
Chapter 14 Summary:
The federal budget is an estimate of the money the government will take in and spend over a fiscal year. It is created by a long process that involves the executive and legislative branches of the government.
Control of the federal budget. First Congress and then the president controlled development of the federal budget. The current budget process calls for cooperation between the executive and legislative branches.
Federal budget cycle. Preparation of a federal budget is a long process that lasts almost two years. It begins with preparation of initial budget requests by federal departments and agencies and ends with a final budget approved by Congress and the president.
Revenue and expenditures. Most revenue, at all levels of government, is raised through a variety of taxes. At the federal level, entitlements are the largest expenditure. At the state and local levels, education tops the expenditure list.
State and local budgets. People depend on state and local governments to fund public schools, police and fire departments, roads and bridges, and health and welfare services. State and local governments pay for services through taxation, lotteries, and user fees.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
In 1948, Dallas Hostetler, a Florida businessman calculated how many days he had to work each year to pay his tax bill. According to his estimate, every penny he earned from January through March went to pay taxes. Hostetler called the first day that he began earning money that he could keep for himself Tax Freedom Day. Experts estimate that the average American works four full months to fund government at the national, state, and local levels.
Federal Revenue Sources
The most important revenue source for the federal government is the individual income tax. This is a tax levied on an individual’s or a married couple’s annual income. Individual income is taxed whether it comes from wages or from earnings on investments. Social insurance taxes are a second major source of federal funding. You see these taxes in the form of Social Security and Medicare deductions from a paycheck. These payroll taxes are used to fund pensions and health insurance for the elderly. They also fund unemployment insurance and disability insurance for workers who are laid off or injured on the job.
The third largest source of federal revenue is the corporate income tax. This is a tax paid by businesses on their profits each year. This is sometimes called a profit tax.
The government also raises money with excise taxes. These taxes are levied on the sale of goods like alcohol, and services. You probably pay federal excise tax on local phone service.
Federal taxes differ in both what they tax and whether they are progressive or regressive. A progressive tax is one in which the tax burden falls more heavily on wealthy than poor taxpayers. Progressive refers to the way tax rates progress from low to high as one’s income rises. Individual and corporate income taxes are progressive taxes.
A regressive tax is one in which the tax burden, as a percentage of income, falls more heavily on poor taxpayers than on wealthy ones. Excise taxes are an example of a regressive tax. A person earning $20,000 a year pays the same excise tax on local phone service as someone earning$2 million a year, That tax, measured as a percentage of income, is much higher for the low-income person.
Another way for the government to fund expenditures is borrowing. When federal spending exceeds tax revenue, the government borrows from private sources and foreign countries. In 2011, the government borrowed about $1.3 trillion to fund the deficit,
New Tax System Proposal
FairTax is a single rate tax proposal in which was first introduced in 1999. It’s never been given a floor vote, and has only been supported by a small group of Republicans. The proposal includes the complete dismantling of the Internal Revenue Service and would eliminate all federal income taxes (including the alternative minimum tax, corporate income taxes, and capital gains taxes), payroll taxes (including Social Security and Medicare taxes), gift taxes, and estate taxes, replacing them with a 23% national sales tax.
FairTax would apply a tax, once, at the point of purchase on all new goods and services for personal consumption. The proposal also specified a monthly welfare payment for low-income earners to offset the tax impact. This was styled by advocates as an “advance rebate”, or “prebate”, of tax on purchases up to the poverty level.
The plan would make the tax system more regressive, despite the built-in monthly rebates for families below a certain income level, especially since the 23% rate is “tax-inclusive” and will actually cost consumers about 30%. “It’s not a mainstream or popular tax reform idea,” noting the administrative side “doesn’t make a lot of sense” because it would involve 51 state agencies rather than a single IRS.
The bills have been referred to the House Ways and Means Committee and Senate Finance Committee.
Budget Mandatory Spending
One third of government spending is covered by the budget hashed out by Congress and the president each year. Most government revenue is already committed by law to be spent in specified ways. This mandatory spending can be altered only by special legislation that changes the amount to be spent.
The two main categories of mandatory spending are interest on the national debt and entitlements. Entitlements are programs through which individuals receive benefits based on their age, income or some other criteria. Examples include food stamps and Social Security pensions, The amount of money spent on such programs depends on the number of people who sign up for their benefits, not on an annual appropriation. The amount of federal revenue dedicated to mandatory spending has grown significantly in recent years.
Budget Discretionary Spending
The budget debated in Congress is made up of discretionary spending. Funding for discretionary spending can be raised or lowered as Congress sees fit. The biggest chunk of discretionary spending goes to the Department of Defense to support the armed forces. The rest funds the many services provided by federal agencies.
A frequent complaint about the budget process focuses on the practice of using earmarks to set aside funds for specific projects. For example, the 2005 Transportation Act, included more than 6,000 earmarks for home-district projects. The most notorious was a $223 million earmark to fund construction of a bridge in Alaska. This “bridge to nowhere was finally removed from the bill, but not before fueling a nationwide debate over the use of earmarks to fund pork-barrel projects.
Funding State and Local Government
State and local governments must also make decisions each year about how to collect the revenue they need and how to spend those tax dollars. The chief executive of each state, county, or city usually prepares the annual budget. The budget is then approved by the state legislature, county board, or city council. Unlike the federal government, state and local governments often face limitations that might make the creation of budgets difficult.
State and Local Versus Federal Budget
Like the federal government, state and local governments raise most of their revenue from taxes. They are often more limited in their power to spend money than is the federal government.
Many state constitutions require their legislatures to approve a balanced budget each year. They are not allowed to borrow money to fill a gap between revenue and expenses. Instead lawmakers must either cut programs or raise taxes when revenue fall short of proposed expenditures.
Some state constitutions prohibit state lawmakers from enacting certain types of taxes. Seven states ban the imposition of taxes on personal income. Other constitutions limit how much certain taxes can increase from year to year. For example, in Massachusetts taxes on property cannot rise by more than 2.5 percent a year. Such restrictions can be changed only if voters approve amending the state constitution.
Citizens play a much larger role in tax policy at the state and local levels than at the federal level. Many states and localities require voters to approve tax hikes through referenda. Some states require a supermajority of two-thirds of the votes cast to approve increases in many types of taxes.
Faced with these limitations, state and local leaders often scramble to generate needed revenue. There are eight sources of revenue commonly used to raise money for state and local government services:
Sales tax. A tax on the sale of goods that is paid by the customer at the time if purchase. 45 states and many cities have a general sales tax.
Property tax. A tax levied on the value of real property such as land, homes, and buildings. Serves as the chief source of income for local governments.
Individual income tax. A tax on the incomes of state residents. 43 states and a number of cities collect income taxes.
Excise tax. A tax levied on the sale of certain goods or services. Also called “sin taxes” because they are often levied on tobacco, alcohol, and gambling.
Lottery. A large-scale, legal gambling organized to raise money for a public cause.
Bonds. Debt issued by a government to raise funds for a specific purpose. Bonds are repaid, with interest, on fixed dates.
Inheritance and Estate taxes. A tax levied on some or all of the estate (property and possessions) a person leaves behind at death. Those who inherit the estate pay the tax.
User fees. Fees charged to use public facilities and services and for permits and licenses.
State and Local Governments Spend Funds
State and local governments devote large shares of their budgets to services that affect young people and their families in direct ways. The most important of those services is education. By 2012, almost 50 million children were enrolled in public elementary and secondary schools across the United States. The average amount spent on each of these students exceeded $11,4,00 per year. More than 85 percent of the money came from state and local governments.
Law enforcement and fire protection are responsibilities relegated mainly to local governments. The United States did not even have a national police force until the creation of the Federal Bureau of Investigation in 1909. In many communities police protection is the second largest expense after education.
State and local governments also fund a variety of health and welfare services, often with assistance from the federal government. Examples include public health clinics for low-income families, health care centers for the mentally ill, and childcare for low-income working families.
Many other services are funded at the state and local levels. For example, state and local governments spend money to build and maintain roads and bridges. They create and maintain parks and playgrounds for the public to enjoy. They fund public libraries, civic auditoriums, and museums. All of these services have been developed in response to public demand. The ever-present challenge is finding the money to pay for what the public wants.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
On February 13, 2012, President Barack Obama sent a $3.8 trillion budget proposal for fiscal year 2013 to Capitol Hill. The nation’s economy was unsteady, but Obama believed his proposal would help balance the budget over time. Republicans in the House of Representatives were not so optimistic. In response to the president’s budget proposal, the chair of the House Budget Committee stated that the budget is a recipe for a debt crisis.
From the point of view of Congress, the arrival of the president’s budget proposal marks the beginning of the federal budget cycle. From the perspective of the executive branch, this is the halfway point in a process that spreads over 18 months, from initial planning to the beginning of the next fiscal year.
Phase One: Prepare Budget Proposal
Constructing a federal budget reflects the broader vision of the president and Congress about the purpose and activities of the national government. Budgets are about setting priorities. The budget process help lawmakers set priorities and separate vital needs from unaffordable luxuries.
The task of separating vital needs from unaffordable luxuries begins in the federal bureaucracy. Months before the president submits a budget to Congress, each department and agency begins work on its own budget request for the following fiscal year.
By June, these budgets requests are submitted to the Office of Management and Budget for review. The main job of the OMB, an agency within the executive Office, is to craft a budget that reflects the policy goals and political agenda of the president.
During the summer and fall, OMB staffers review the various budget requests. They consider what is vital and affordable based on projected revenue. They also work with the president and his advisers to see how well the various requests reflect the president’s priorities. Based on all of this information, the OMB prepares a budget proposal for the president to review and revise. By law, the president must submit this proposal to Congress by the first Monday in February.
Phase Two: Craft Budget Resolution
Once the president’s budget proposal reaches Congress, the House and Senate budget committees take over. Their job is to analyze the proposed budget and to recommend changes that reflects Congress’s spending priorities.
The two budget committees are assisted by the Congressional Budget Office. The CBO’s main job is to compare how well the president’s budget matches its own estimates of future revenues and expenses. As a nonpartisan agency, the CBO does not make policy recommendations to Congress.
During March and April, House and Senate budget committees hold hearings on the president’s proposed budget. They hear testimony from OMB staffers about their analysis. They quiz agency officials about funding needs. They consult with other committees to hear their views and estimates about next year’s budget.
Based on this information, each budget committee prepares its own budget resolution. A budget resolution sets guidelines for how much money Congress should spend n 20 broad categories. These categories include national defense, agriculture, and health. A budget resolution is not a detailed spending plan like the president’s budget proposal. Nor does it have the force of law. But it does guide Congress over the next few months.
After each chamber passes it own budget resolution, the two versions go to a conference committee to be reconciled. The final version is supposed to be approved by the House and Senate by April 15.That deadline is not always met and some years no budget resolution has been approved.
Phase Three: Enacts Appropriation Bills
Beginning in March, the Senate and the House Appropriations Committees start work on Congress’s 13 appropriations bills. Each bill deals with one of the spending categories laid out in the budget resolution. These bills taken together, make up the government’s final budget.
Work on appropriation bills continues through spring and summer. During this time, the president pays close attention to the budget process. If all goes well, most of the work on the 13 bills will be completed before Congress goes on vacation in August.
When Congress returns in September, it works out any differences between the appropriation bills passed by the House and Senate. The bills then go to the president for approval. The president may sign or veto some or all of the bills. Congress can either seek to override the veto or revise the bill to gain the president’s approval. Ideally, all 13 appropriation bills are law and the budget is in place before the new fiscal year begins on October 1.
Phase Four: New Fiscal Year Begins
It sometimes happens that the president and Congress are not able to reach an agreement on the budget by October1. Usually in this situation, Congress enacts and the president signs a continuing resolution to keep the government working. A continuing resolution allows government programs to operate at current funding levels for a fixed period. During this time, both sides try to work out their differences on the budget.
If Congress and the president cannot reach an agreement by the time the continuing resolution ends and another one is not enacted, the result is a budget crisis. In extreme cases, a budget crisis can lead to a shutdown of “nonessential” government activities. Such shutdowns have occurred many times over the years, sometimes for a few hours, sometimes for several days.
One of the most serious budget crisis began in 1995, when budget negotiations broke down between president Bill Clinton and Congress. A continuing resolution was passed to keep government going for a few weeks. When time ran out, Congress and the president could not agree on another resolution, much less a final budget. As a result, many agencies of the federal government were shut down for weeks. The crisis ended the following January, when the president and Congress agreed to another continuing resolution.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
The House chamber filled with representatives, senators, Supreme Court justices, cabinet heads, military leaders and invited guests have gathered for the president’s annual message to Congress known as the State of the Union address. The constitution says the president “shall from time to time give to the Congress information of the State of the Union and recommend to their consideration such measures as he shall judge necessary and expedient.
For example, in his 2012 address, Obama discussed the achievements of the U.S. military before launching into the major topic of the night: the American economy. He recalled the Great Recession in 2008 “plunged our economy into a crisis that put millions out of work, saddled us with more debt and left innocent hardworking Americans holding the bag.” Obama said since then, the economy has made great strides.
Obama went on to outline an ambitious agenda that included increasing manufacturing in the United States, building skills for American workers, reforming education and immigration policy, cutting taxes for small business and the middle class, removing tax cuts for the wealthy, developing clean energy, and improving infrastructure. These plans were part of Obama’s vision to balance the budget and reduce the federal deficit.
The following month, Obama presented the choices he made to reduce the deficit in the federal budget he submitted to Congress. Submitting a budget for the federal government is one of the president’s most important responsibilities each year.
During some periods in our history, Congress dominated the budget making process and at other times, the president is clearly in charge. Today the control is shared as the two branches work together to shape a budget that reflects their priorities.
The federal budget is an estimate of the money the government will take in and spend on programs over the next fiscal year. A fiscal year is the period of time an organization uses for its budgeting, record keeping, and financial reporting. The U.S. government’s fiscal year begins October 1 and ends September 30.
Congressional Control of Budget (1789 – 1921)
The Constitution talks about levying taxes and spending money. It does not mention budgets. When the Constitution was written, the idea of trying to estimate revenues and expenditures a year in advance was new. Governments simply collected taxes and spent money as needed. In times of crisis or a shortfall in income, taxes were raised to bring in extra money. Congress dominated this simple method of raising and spending money.
As the Constitution requires, all proposals for the spending of federal funds originated in the House of Representatives. These requests were then combined into a single spending bill. Once the House approved the spending bill, it went to the Senate for approval. The president’s role in this process was limited to signing the spending bill into law or vetoing it.
This system worked fairly well during the 1800s. Usually revenues and expenditures came out about even, creating a balanced budget. During some years, the country even had a small budget surplus, with extra funds left over. The only time the country faced a federal deficit, or a shortfall of revenue, was during wartime.
In times of war, the government raised taxes and borrowed money to fund the military campaign. The money borrowed created a national debt. When the war ended, Congress worked to retire, or pay off, the national debt as quickly as possible.
Presidential Control of Budget (1921 – 1974)
The rapid growth of government spending during World War I overwhelmed Congress’s old way of appropriating funds. By the end of 1919, federal expenditures were more than 26 times what they had been just five years earlier. The national debt had soared to a record $26 billion.
Faced with a huge war debt and with what looked like runaway spending, Congress enacted the Budget and Accounting Aact of 1921. This act set up the Bureau of Budget in the executive branch to oversee a new budget making process. The bureau was renamed the Office of Management and Budget in 1970. The act also set up the General Accounting Office to improve congressional oversight of federal spending.
Under this new budget process, the president was required to submit a proposed budget to Congress each year. The intent of this requirement was to give Congress better information with which to make spending decisions. However, the effect was to concentrate budget power in the executive branch.
Beginning with Franklin Roosevelt, presidents used their new budget power to promote their own policy agendas. They decided which agencies and programs should be funded and which should not. Congress could override those decisions, but generally it went along with the president’s budget.
By 1970, it was clear that the budget process put in place in 1921 had not led to a new era of balanced budgets. Year after year, presidents sent budgets to Congress that included costly new programs that lawmakers wanted to support. But few in either branch wanted to raise taxes to fund those new projects. The result was year after year of deficit spending or spending financed by borrowing rather than by tax revenues. As the deficit piled up, the national debt began to rise to levels that alarmed many national leaders.
Nixon and Congress
Concern over the budget process mounted during Richard Nixon’s presidency. Facing disapproval over the Watergate scandal, Nixon enraged many legislators by using the president’s power of impoundment to nullify congressional spending decisions. Impoundment involves the refusal of a chief executive to spend funds that have been appropriated by the legislature.
Impoundment was not new. Presidents before Nixon had used this power to make small spending cuts in programs that they view as unwise or unnecessary. Members of Congress might grumble when their favorite projects are canceled, but they do not rebel against the occasional decision to impound federal funds.
President Nixon used his power to impound funds on a scale never seen before. In an effort to reduce deficit spending, he refused to spend billions of dollars already appropriated by Congress. He also used impoundment to defund programs he did nor approve of.
Members of Congress saw Nixon’s use of impoundment as an assault on their constitutional power of the purse. In 1974, Congress responded by enacting legislation that both increased its role in shaping the federal budget and limited the president’s power of impoundment.
Shared Control of Budget (1974 to Present)
The Budget and Impoundment Control Act of 1974 created the budget process that is still in use. The process gives the legislative and executive branches shared control over budget making.
The main change brought about by this legislation was the creation of new budget committees in both the House and Senate. These committees are responsible for drafting Congress’s own spending priorities, known as the budget resolution. The act also created the Congressional Budget Office (CBO) to assist Congress in this process. The CBO provides nonpartisan estimates of revenue and spending. It also scores proposed tax and spending bills to indicate their impact on future budgets.
Many of the lawmakers who supported the new budget process laid out in the 1974 act hoped it would reduce conflict between the executive and legislative branches. Even with responsibility more evenly shared, the budget process frequently leads to power struggles between the two branches. At the center of these struggles are deep disagreements over how revenue should be raised and how the tax dollars collected each year should be budgeted and spent.
Directions: You serve on a team of Economic Advisers to the President of the United States, who is trying to reduce the national deficit. The new president has been elected on the promise of fiscal restraint. He has promised the voters he will not raise taxes, and will not reduce Social Security or Medicare. He has promised interest groups that he will not reduce Commerce Department spending. By law he must pay the net interest owed on the debt. The President’s budget is projected to be balanced, and he promises to avoid a deficit unless the U.S. faces a recession or war.
The actual preparation of the budget is the responsibility of the Office of Management and Budget (OMB). Each federal agency draws up a list of its own spending plans and sends these to the OMB. The president and his advisers study this preliminary budget and send the spending requests back to the agencies for fine-tuning. After a final presidential review, the budget is sent to Congress. Certain items in the budget cannot be changed, such as entitlements and the interest that must be paid on the national debt. The Congressional Budget Office (CBO) carefully evaluates the president’s budget for the House and Senate. The House and Senate Budget Committees review the budget and reconcile differences between their two versions of the budget. After the budget is approved, the House passes an appropriations bill, officially setting aside money for expenditures.
There is a debate in Washington, DC. concerning the U.S. federal budget. Today’s simulation is designed to help you better understand what items make up the federal budget, what impact budget cuts might have on your lives, and what options might be pursued to balance the federal budget over the long term. You will choose between a variety of options to cover a hypothetical budget gap of $300 billion. Some of the options were recommended last year by a bipartisan commission on reducing the deficit, and others proposed by budget analysts of different political backgrounds. After making your choices, add up the total of the funds noted next to your selections.
The national debt affects the distribution of income and transfers purchasing power from the private to the public sector. The persistent nature of the federal budget deficit and the way that deficit spending adds to the federal debt. Attempts to control the deficit have taken the form of mandated deficit targets and pay-as-you-go provisions. President Clinton’s Budget Reconciliation Act of 1993 significantly reduced the federal budget deficit by introducing higher marginal tax brackets. Spending caps were introduced in the balanced budget agreement of 1997 in a further attempt to control the deficits. Finally, after 29 consecutive years of deficits, the federal budget was in surplus by 1998.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
chief executive, runoff election, line of succession, reprieve, pardon, cabinet, martial law, executive order, bureaucracy, pocket veto, chief of staff, administration, independent agencies, whistle-blower, privatization
Chapter 13 Summary
The executive branch enforce the laws and carries out government policy. A chief executive leads this branch and oversees the work of the government bureaucracy.
Mayors, governors, and presidents are all chief executives. They manage executive affairs at their level of government.
The president has certain powers under the Constitution. Over time, presidential power has expanded as a result of custom and practice. Today the president enjoys powers beyond those listed in the Constitution.
The president plays many roles as head of the executive branch. Among these are chief executive, commander in chief, chief diplomat, and chief policymaker.
The executive branch contains many officials, departments, and agencies. The president oversees the operations of these various groups with assistance from advisers.
Most Americans benefit from the services that local, state, and federal bureaucracies provide despite complaints about bureaucratic inefficiency.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
The president, as chief executive, oversees and is assisted by the bureaucracy that makes up and manages the executive branch. This branch consists of 4 main groups: the White House staff, the Executive Office of the President, the executive departments, and the independent agencies.
White House Staff
The White House staff consists of about 400 people. It includes the president’s lawyer, press secretary, various speechwriters, and many assistants.The most powerful staff member is the chief of staff, who is considered the president’s most loyal aide.
Presidents depend on the White House staff to provide them with guidance and advice on a wide range of issues. The chief of staff also serves as a gatekeeper, controlling who gets to talk to the president and who does not.
Executive Office of the President
The Executive Office of the President (EOP) was created in 1939 by Congress to provide support staff to the president. Today it has about 1,800 employees. Key agencies include: the Office of Management and Budget, the Council of Economic Advisers (CEA), and the National Security Council (NSC).The president can also add new agencies to the Executive Office of the President to carry out specific goals of their administration.
Executive Departments
The executive departments make up a third group of organizations in the executive branch. These departments carry out the work of government in broad areas of public policy, such as agriculture, commerce, and labor. Departments include federal agencies that target the more specific policy areas within the department’s general focus. E.g.: The Federal Bureau of Investigation (FBI) is an agency that exists within the Justice Department and the U.S. Mint is part of the Treasury Department.
Independent Agencies
The executive branch also includes dozens of independent agencies that help implement federal policy. These groups are considered independent because they don’t fall within the executive departments though they answer directly to the president.
One of the largest independent agencies is the National Aeronautics and Space Administration (NASA). Other well known independent agencies include the Central Intelligence Agency (CIA), the Peace Corps, the Federal Communications Commission (FCC) and the Food and Drug Administration (FDA).
Some independent agencies create and enforce regulations. For example, the FCC has jurisdiction over channels of communication, including radio and television. The FDA was established to promote public health through regulating consumable food and pharmaceutical products.
A few federal agencies are run like businesses. Government corporations are defined as the companies that are owned by the government but are given independent operation where they are not managed directly by the government but operate as private businesses. They depend on revenues that they generate themselves rather than on tax dollars. Examples of these are the United States Postal Service, Corporation for Public Broadcasting, and Amtrak.
Beaucracies
Government at every level depends on a bureaucracy to carry out public policies. The bureaucracy is one aspect of government that Americans love to hate. According to critics, government bureaucracies are too large, to impersonal, and too self serving to accomplish much.
Civil Servants
Bureaucracies are run by civil servants, or civilian employees working in government agencies. The work done by civil servants ranges from nursing and photography to engineering and economic analysis. They are responsible for providing many of the government services that Americans need and want.
Sources of Bureaucratic Power
For a bureaucracy to be effective, it must have the power it needs to do its job. This power stems from various sources:
Legislative and budgetary support. A bureaucracy relies on laws and adequate funding to support its work
Interest groups support. Government agencies can gain or lose power depending on the response of interest groups to their work.
Expertise of bureaucrats. The ideal bureaucracy is staffed by workers who are expert at their jobs.
Longevity or permanence. The longer a government agency exists, the more likely it is to enjoy substantial power
Effective leadership. Federal agencies thrive under effective leaders.
Citizen demand. Concerned citizens can help expand and strengthen bureaucracy by demanding government action to solve a problem
Ultimately, bureaucracies work under the direction of an elected or appointed chief executive, whether a mayor, a city manager, a governor, or the president. Legislative bodies akso monitor their operations. Congress has held hearings to investigate the work of its agencies. To help weed out corruption, Congress has also passed laws to protect whistle-blowers, or employees who expose wrongdoing.
Growth Out of Control
Bureaucracy has grown at all levels of government since the country was founded. Much of this growth has occurred since the end of WWII, particularly since the 1960s, as government has provided more services to the American people.
The size of the federal workforce today is about the same as it was in 1960. The shrinking of the federal bureaucracy has been made possible through privatization, or the practice of contracting private companies to do jobs once done by civil servants.
Bureaucracies Affect Our Lives
Government bureaucracy has improved the lives of many Americans. In the past few decades, it has helped to achieve the following:
fewer people living in poverty
better air and water quality
more rights for women and minorities
better access to health care for the elderly
safer food and drugs
lower crime rates
higher high school graduation rates
elimination or prevention of diseases such as polio
higher rates of home ownership
development of the internet
safer highways
more children in preschool
Despite frequent complaints about bureaucratic waste and mismanagement, most Americans would be reluctant to give up the benefits that bureaucracy provides.
The views and opinions expressed here are those of the students and speakers of our government classes and do not necessarily reflect the views or positions of this website, institution, or organization. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
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