Web Links

• p. 304: Go to http://www.cbo.gov/ to learn about the current outlook for the budget of the U.S. government.

Issues and Applications Web Resources:

• For more information about the legalities of the Growth and Stability Pact, go to http://www.eurotreaties.com/emupact.html.
• To learn more about the economic intent of the Growth and Stability Pact, follow the link to the European Commission’s discussion at http://europa.eu.int/comm/economy_finance/about/activities/sgp/sgp_en.htm.

Federal Government Spending and Taxation
A quick way to keep up with the federal government's spending and taxation is by examining federal budget data at the White House Internet address.

     Title: Historical Tables: Budget of the United States Government

     Navigation: Use http://www.whitehouse.gov/omb/budget/fy2005/ to visit the Office of Management and Budget. Select the most recent budget. Then click on Historical Tables.

Application
After the document downloads, perform the indicated operations and answer the questions.

1. Go to section 2, "Composition of Federal Government Receipts." Take a look at Table 2.2, "Percentage Composition of Receipts by Source." Before World War II, what was the key source of revenues of the federal government? What has been the key revenue source since World War II?

2. Now scan down the document to Table 2.3, "Receipts by Source as Percentages of GDP." Have any government revenue sources declined as a percentage of GDP? Which ones have noticeably risen in recent years?