Final answer:
A tax is a required payment to a government, and the resulting collection of money is called revenue. In 2020, the US government raised about $3.4 trillion in revenue, with income taxes, payroll taxes, and excise taxes as the largest sources. Taxes can have various effects on the economy and individuals.
Step-by-step explanation:
A tax is a required payment to a local, state, or national government. The collection of money through taxation is the primary way that the government collects money. The income that a government receives from taxation as well as other non tax sources is called revenue.
In 2020, the United States raised about $3.4 trillion in revenue. Income taxes ($1.61 trillion), payroll taxes on Social Security and Medicare ($1.31 trillion), and excise taxes ($87 billion) make up three of the largest sources of revenue for the federal government.
Taxes can influence the economy by affecting various aspects of consumer behavior, resource allocation, growth, and productivity, as well as saving and spending, since the burden of taxes can be transferred to others.