What percentage of federal revenues comes from individual income taxes?
47%
Which federal taxes are considered progressive? Why are they so called?
- income taxes.
- the more you make, the bigger percentage of money you pay
Which federal taxes are considered regressive? Why are they so called?
- payroll tax (social income taxes)
- it effects the poor more because every one pays the same amount no matter how much you make
What is the purpose of the social insurance taxes?
- to provide general welfare
- it is a safety net for old people. No one will live under a certain amount of income
Why does the government tax for non-revenue purposes?
-to discourage people from “bad” things, such as alcohol and cigarettes
What are five sources of non-tax revenue of the federal government?
- savings bonds
- treasury bills
- printing money
- passport fees
- bus fees
What is the current federal deficit?
-445 billion
What is the current federal/national debt?
18.9 trillion
What are the government’s four largest expenditures?
- medicare/caid
- social security
- defense/war
- income security
What percentage of the federal budget consists of mandatory spending?
-69%
What are the government’s four greatest sources of revenue?
- individual income tax
- corporate income tax
- social insurance and retirement receipts (payroll tax)
- excise tax
