Tax Revenues and Public Funding
Which of these is MOST likely to be paid for using tax revenues?
-new uniforms for mall security guards
-new playground equipment in a park
-new landscaping around an apartment building
-new paint on a billboard
The option that would most likely to be paid for using tax revenues would be: new playground equipment in a park
Income and profit taxes, Social Security "contributions," taxes on goods and services, commonly referred to as "consumption taxes," payroll taxes, levies on the ownership and transfer of property, and other taxes are all included in the definition of "tax revenue."
In the US, taxes on income and profits, sales and use taxes on products and services, and property ownership and transfer taxes are the main sources of funding for the federal, state, and municipal governments. Federal Social Security contributions, federal unemployment tax required by the Federal Unemployment Tax Act (FUTA), Medicare taxes, state payroll taxes like state unemployment taxes that can partially offset FUTA levies, and other taxes are all examples of federal payroll taxes that generate revenue for the government.