2. Over 75% of the revenue received by the federal government is from ____ and ____ taxes.
a. sales and income
b. income and excise
c. Social Security and estate
d. estate and sales
e. income and Social Security
I'll be glad to check your answer.
To determine the correct answer, we can break down the options and identify which combination of taxes generates over 75% of the revenue received by the federal government.
a. Sales and income taxes: Sales taxes are typically collected by state and local governments, not the federal government. While income taxes do contribute to federal revenue, this option does not provide a combination that meets the requirement.
b. Income and excise taxes: Excise taxes, such as those on specific goods like gasoline or alcohol, contribute to federal revenue but are not a significant portion. So, this option does not fulfill the criteria.
c. Social Security and estate taxes: Social Security taxes, which fund the Social Security program, do contribute a substantial amount to federal revenue. Estate taxes, on the other hand, are not a major source of revenue. Therefore, this option does not meet the requirement.
d. Estate and sales taxes: Estate taxes do not generate a significant percentage of federal revenue. Additionally, sales taxes are primarily collected at the state and local levels, not by the federal government. So, this option is incorrect.
e. Income and Social Security taxes: Both income taxes and Social Security taxes are major sources of revenue for the federal government. Income tax is collected from individuals and corporations, while Social Security tax is deducted from employees' earnings. This combination best aligns with the statement.
Therefore, the correct answer is e. income and Social Security taxes.