Final answer:
The largest tax collected by the U.S. government is the federal income tax, which is subject to individuals earning above a certain level of income, including wages, investment returns, and other types of taxable income. The Internal Revenue Service is responsible for tax collection and enforcement. In addition to federal income tax, there are other forms of taxation at the federal, state, and local levels.
Step-by-step explanation:
The largest tax collected by the U.S. government is the federal income tax. This tax is levied on the various forms of income received by individuals, such as wages, salaries, and investment returns. The federal income tax system in the United States is progressive, meaning that the tax rates increase as income increases. All taxpayers who earn above a certain level of income are subject to federal income tax, and the amounts and rates differ based on filing status, income level, and deductions. This includes employees earning wages, self-employed individuals, and investors receiving dividend income, among others.
The revenue collected from federal income tax is primarily used to fund government programs and services at the national level, including defense, social security, health care, and education. The Internal Revenue Service (IRS) is the federal agency responsible for tax collection and enforcement of tax laws. Taxation policies and rates can often change based on political decisions and legislation.
Apart from income tax, there are other types of federal taxes such as payroll taxes for Social Security and Medicare, corporate taxes, and excise taxes. At the state and local levels, sales taxes, property taxes, and state income taxes are common, with percentages and uses varying significantly.