Tax Revenues

SOC Final Exam

What are taxes used for in the government?

Taxes are the main sources of funding for government expenditures, including programs, services, and infrastructure

What are some types of taxes collected by the U.S. government?

• Corporate income taxes (including payroll taxes)

• Personal income taxes

• Excise taxes (on specific goods/services, e.g. tobacco, gasoline)

• Estate taxes (on inherited wealth above certain thresholds)

What is the primary source of revenue for the U.S. government?

Personal income taxes

How do U.S. tax levels compare to other OECD countries

Americans pay a smaller portion of taxes relative to citizens in other OECD (Organization for Economic Co-operations and Development) countries

What are excise taxes?

Taxes placed on specific goods and services, often to influence behavior or raise revenue from items like alcohol, fuel, or tobacco