Briefly discuss the source of federal government revenues. Give specia

Briefly discuss the source of federal government revenues. Give special attention to the evolution of revenue sources since the 1960s.

What will be an ideal response?

ANSWER

Just as in 1960, the bulk of federal revenues come from individual income taxes. In 1960, 44 percent came from individual income taxes and in 2000 49.6 percent did. Social insurance revenues, mainly comprised of Social Security payroll taxes, have become a very important source of federal government revenue over the period, rising from nearly 16 percent of federal budget outlays to over 30 percent. Corporate income tax collections have fallen considerably over time, as have excise taxes.