08 June 2008
(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