08 June 2008

Funding Government in the United States

(The following article is taken from the U.S. Department of State publication, How the United States is Governed.)

The various levels of government use a wide variety of taxes and fees to pay for their operations. The following is a summary of the major sources of revenue for each level of government.

Federal

• Personal and corporate income tax
• Payroll taxes for Social Security and Medicare
• Excise taxes
• Estate and gift taxes
• Customs duties

State

• Personal income tax (43 states)
• Corporate income tax
• State sales tax (45 states)
• Excise taxes
• Business and professional permits and licenses
• Lotteries
• Transfers from the Federal Government

County, Municipal and Other Local

• Real estate and personal property tax
• Commercial property tax
• Sales tax (where allowed by the state)
• Fines for traffic, parking, and other minor offenses
• Income tax or business gross receipts tax (where allowed by the state)
• Miscellaneous permits, licenses, and fees