How Much Money Does The U.s Get From Taxes

Full REVENUES

The federal regime nerveless revenues of $3.5 trillion in 2019—equal to well-nigh 16.3 percent of gross domestic product (GDP) (figure 2). Over the past fifty years, federal revenue has averaged 17.4 percent of GDP, ranging from xx.0 percent (in 2000) to 14.6 percent (most recently in 2009 and 2010).

INDIVIDUAL INCOME Tax

The private income revenue enhancement has been the largest single source of federal revenue since 1950, amounting to almost l percent of the full and 8.i percent of Gdp in 2019 (figure 3). In recent years, individual income tax revenue has climbed as loftier as ix.9 percent of GDP (in 2000) at the acme of the 1990s economic nail and dropped as depression as vi.1 percent (in 2010) following the 2007–2009 Great Recession.

CORPORATE INCOME Tax

The revenue enhancement on corporate profits yielded 7 percentage of regime revenue in 2019, a acquirement source that has been trending downwards. Acquirement from the tax has fallen from an average of 3.7 percent of Gdp in the late 1960s to an average of only 1.4 percentage of GDP over the past 5 years, and 1.1 percentage of Gdp about recently in 2019 (figure 3).

SOCIAL INSURANCE (PAYROLL) TAXES

The payroll taxes on wages and earnings that fund Social Security and the hospital insurance portion of Medicare make up the largest portion of social insurance receipts. Other sources include payroll taxes for the railroad retirement organization and the unemployment insurance program, and federal workers' pension contributions. In total, social insurance levies were 36 percent of federal acquirement in 2019.

The cosmos of the Medicare program in 1965, combined with periodic increases in Social Security payroll taxes, caused social insurance receipts to grow from 1.half-dozen percent of Gdp in 1950 to half-dozen.two percent in 2009 (figure 3). A temporary reduction in employees' share of Social Security taxes—office of the stimulus program following the financial meltdown—reduced social insurance receipts to v.three percent of Gross domestic product in 2011 and 2012. Social Insurance tax receipts have since climbed back to 5.9 percent of Gdp in 2019.

FEDERAL EXCISE TAXES

Taxes on purchases of goods and services, including gasoline, cigarettes, alcoholic beverages, and airline travel, generated two.ix pct of federal revenue in 2019. Merely these taxes, too, are on the wane: excise tax revenues have fallen steadily from an average of 1.7 percentage of Gdp in the late 1960s to an average of 0.5 percentage over 2015 to 2019 (figure iii).

OTHER REVENUES

The federal government also collects revenue from estate and gift taxes, customs duties, earnings from the Federal Reserve System, and various fees and charges. In total, these sources generated 5.0 percent of federal revenue in 2019. They have ranged between 0.vi and 1.0 percent of Gross domestic product since 1965 (figure three). In recent years, the figure has been on the high end of that range because of unusually high profits of the Federal Reserve Lath related to its efforts to stimulate the economy since 2008.

SHARES OF Full Revenue

The private income revenue enhancement has provided near half of full federal revenue since 1950, while other revenue sources have waxed and waned (effigy 4). Excise taxes brought in 19 percent of total revenue in 1950, but only near 3 percent in contempo years. The share of revenue coming from the corporate income taxation dropped from about one-third of the full in the early 1950s to 7 percent in 2019. In contrast, payroll taxes provided more than i-3rd of revenue in 2019, more three times the share in the early 1950s.

Updated May 2020

Source: https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-federal-government#:~:text=The%20federal%20government%20collected%20revenues,recently%20in%202009%20and%202010).

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