Fiscal Policy: Government Expenditures and Revenues, Budget, National Debt
4 pages (1000 words)
, Admission/Application Essay
Revenues are an important component in a government budget. The extent of government spending in a fiscal year is planned according to the revenues generated. Under such a scenario the sources of revenue for the government becomes a crucial thing. The sources of federal revenues are “individual income taxes, social insurance (payroll) taxes, corporate income taxes, excise taxes, estate and gift taxes, remittances from the Federal Reserve, customs duties, and miscellaneous fees and fines.” Out of the above it can be unambiguously stated that personal income tax is the largest source of government revenue, accounting 45 percent of the total revenue.