Which is the primary source of revenue for the federal government?

• A. Excise taxes
• B. Corporate income taxes
• C. Tariffs on imports
• D. Individual income taxes

Answer: (D)

Verified step by step guidance

1. Understand the question is asking about the primary source of revenue for the federal government, which means identifying the largest contributor to government income.
2. Recall the main types of federal government revenues: individual income taxes, corporate income taxes, excise taxes, and tariffs on imports.
3. Recognize that individual income taxes are taxes paid by individuals on their earnings, which typically make up a significant portion of government revenue.
4. Compare the relative sizes of these revenue sources historically and conceptually, noting that excise taxes, corporate taxes, and tariffs generally contribute less than individual income taxes.
5. Conclude that individual income taxes are the primary source of revenue for the federal government based on their larger share compared to other tax types.