Quantitatively,which of the following taxes are the most important taxes in the U.S.economy?
A)taxes on investment
B)taxes on labor
C)sales taxes
D)property taxes

Question

Quizplus · Accepted Answer

Taxes on labor, such as income taxes and payroll taxes, are the most important taxes in the US economy as they generate the majority of government revenue. In 2020, individual income taxes accounted for 50% of total federal revenue, while payroll taxes (which fund Social Security and Medicare) accounted for 36%. Taxes on investment, sales taxes, and property taxes are also important sources of revenue, but they generate significantly less revenue compared to taxes on labor.

Quantitatively,which of the Following Taxes Are the Most Important Taxes