Government at a glance Legal framework Federal government No real constraints on spending in constitution Taxes must come originate in House of Representatives Equal tax rates across states Income tax came from 1 6th amendment to constitution Can run budget deficits State and local government Can impose spending/taxing restrictions on itself Many states cannot run budget deficits4 Government at a Glance • Legal framework – Federal government • No real constraints on spending in Constitution • Taxes must come originate in House of Representatives. – Equal tax rates across states. – Income tax came from 16th amendment to Constitution. • Can run budget deficits – State and local government • Can impose spending / taxing restrictions on itself. • Many states cannot run budget deficits