1RUNNING HEAD: Module 3 Web Assignment Federal Government Spending and Taxation Erika Delgado Community College of Aurora
2Federal Government Spending and Taxation Table 2.2 – Percentage Composition of Receipts by Source: 1934-2020 The table shows that the three main sources of revenue for the federal government are individual income taxes, corporation income taxes, and excise taxes. Table 2.2 shows the percentage compassion from 1934 to 2014 and from 2015 to 2020 estimate percentages are given(Fiscal Year 2016 Historical Tables Budget of the U.S. Government, 2016). Other components ofthis table include Social Insurance and Retirement totals, On and Off-Budget totals, and the total for all receipts, as well as On and Off-Budgets. Before World War II, the key source of revenues of the federal government was excise taxes. Excise taxes are taxes paid when purchases are made on certain goods or services, such as gasoline and cigarettes. Table 2.2 shows that in 1939 individual income was 16.3 percent, corporation income taxes were 17.9 percent and excise taxes were almost double at 29.7 percent (Fiscal Year 2016 Historical Tables Budget of the U.S. Government, 2016). By the end of WWII in 1945, there was a drastic increase in individual income taxes and corporation income taxes.