Question

List six taxation methods for raising revenue that Congress uses today, and give a one-sentence explanation of each.

Answer 1

The U.S. government uses six taxation methods for raising revenue: Individual Income Tax, Corporate Income Tax, Sales Tax, Excise Tax, Property Tax, and Customs and Tariffs.

Step-by-step explanation:

The U.S. government uses six taxation methods for raising revenue:

1. Individual Income Tax: This tax is based on an individual's earnings and is collected by the federal government.
2. Corporate Income Tax: This tax is based on the profits of a corporation and is collected by the federal government.
3. Sales Tax: This tax is applied to the purchase of goods and services and is collected by state and local governments.
4. Excise Tax: This tax is levied on specific goods like gasoline, alcohol, and tobacco and is collected by the federal, state, and local governments.
5. Property Tax: This tax is based on the value of owned real estate and is collected by state and local governments.
6. Customs and Tariffs: These taxes are imposed on foreign imports and are collected by the federal government, although they are less important today as a source of revenue.