what are the sources of public revenue
Public revenue is a vital source of income for governments and other organizations. It comes from a variety of sources, including taxes, fees, royalties, and the sale of goods and services. This article describes some of the most common types of public revenue.
The Tax Code
The United States tax code is a complex set of regulations that govern how taxes are paid. The code is divided into individual, corporate, and estate tax areas. The individual tax area is composed of the income tax, the social security tax, and the Medicare tax. The corporate tax area includes the corporate income tax, the capital gains tax, and the alternative minimum tax. The estate tax area includes the estate and gift tax.
The Business Tax
Public revenue comes from a variety of sources such as taxes, fees, and fines. Taxes are the most common source of public revenue, accounting for about two-thirds of all government revenue. Other major sources of public revenue include social security and unemployment insurance taxes, corporate income taxes, and other tariffs and nontariff barriers.
The Estate Tax
The estate tax, also called the death tax, is a federal tax on the transfer of property by an individual when he or she dies.
The estate tax is imposed at a rate of 40% on estates exceeding $5.49 million per individual or $10.98 million per couple as of 2013.[1]
Estate taxes are collected by the Internal Revenue Service (IRS).
There have been periodic efforts in Congress to repeal the estate tax, but these efforts have failed.
The estate tax has been in effect since 1916 and has raised about $300 billion since its inception.
The estate tax is considered a progressive tax because it increases as the value of the estate decreases.
The Income Tax
Public revenue comes from a variety of sources, including the income tax. The income tax is a tax levied on individuals and businesses that earn income. It is one of the largest sources of government revenue. The income tax system is based on taxable income and exemptions. The system applies to both individuals and businesses. The income tax is levied at different rates, depending on the level of income.
Conclusion
Public revenue is essential for the functioning of a government. It provides funding for programs and services that citizens need and want, and it helps to keep taxes low so that people can continue to enjoy the benefits of a free society. In today’s economy, public revenue must be raised through both direct taxation (e.g., income tax, value-added tax) and indirect taxation (e.g., sales taxes). While there are many different sources of public revenue, two main categories are important to note: earned income and property taxes.