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How does the federal government pay for its operations? Explair

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Federal government gets money from various sources to pay for its operations and these sources are given as follows:

  • Money that comes from the interest on government securities that have been purchased by the U.S. government.
  • Interest on foreign currency investments.
  • Collecting income taxes from people.
  • It also earns by getting money as interest on foreign currency investments.
  • The largest sources of revenue are the income tax that the government receives from the corporates, excise taxes, and gift taxes.
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