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What is the United States government's largest source of revenue?

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mizzjellybean | Student, Grade 10 | eNotes Newbie

Posted January 12, 2010 at 12:48 AM via web

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What is the United States government's largest source of revenue?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted January 12, 2010 at 1:20 AM (Answer #1)

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By far the largest source of revenue for the United States federal government (as opposed to state and local governments) is income tax and payroll taxes from private individuals.

Between them, these two kinds of taxes (payroll taxes are taken our for things like Social Security and Medicare -- they are taken straight out of your paycheck without you asking for it to happen) make up eighty percent of the government's revenues.

The next biggest source of revenue is corporate income taxes (those paid by businesses and not by individuals).  This makes up about 12% of the total.

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