Question

Respond to the following in a minimum of 175 words:

Identify the main sources of revenue for and the largest expenditures made by federal, state, and local governments.

Answer 1

The main sources of the revenue for the federal government are the taxes that comprise of individual income taxes, corporate income taxes, and payroll taxes.

The main sources of revenue for the state and local governments include income, sales as well as property taxes. The sales and income taxes constitute a majority of the combined state tax revenue whereas property taxes form the largest tax revenue source for the local governments. The state and local governments also get funds from the federal government through the intergovernmental transfer program and in for of grants.

Explanation:

The main expenditures of the federal government include the purchase of services and goods, wages, transfer payments to the households, healthcare, national defense as well as the intergovernmental transfers. The state and local governments spend much of their revenue in providing education.