Which of the following types of taxes generates the most revenue for governments in the United States?
A) Social Security tax
B) personal income tax
C) property tax
D) sales tax
E) excise tax

Question

Quizplus · Accepted Answer

Personal income tax generates the most revenue for governments in the United States. According to data from the IRS, in 2019 personal income tax accounted for 50.7% of total federal tax revenue, while payroll taxes (including Social Security tax) accounted for 34.2%, corporate income tax accounted for 6.6%, excise taxes accounted for 3.1%, and estate and gift taxes accounted for 0.6%. Property taxes vary by state and local jurisdiction, but generally do not generate as much revenue as personal income tax or sales tax. Sales tax also varies by state, but tends to be a significant source of revenue for state and local governments.

Which of the Following Types of Taxes Generates the Most