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What % of the national budget is paid by income taxes?

are they even needed? why can't our genius congressmen figure a better way?

3 Answers

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  • lare
    Lv 7
    9 years ago

    the federal income pie breaks down as 47.4% income tax, 35.6% FICA, 7.9% corporate tax, 8.9% customs and excise tax.

    the federal budget does not include Medicare or Social Security, those programs are funded by FICA and currently running a surplus.

    so that leaves income tax as 74% of the federal budget.

    yes technically there are alternatives. for example you could raise the federal royalty on oil production from 1/6 to 2/3. you could raise duties on Chinese goods sold at WalMart from 2% to 100%. but you would still be "taxed" because the price of gas would then be $8.00/gallon and the cost of everything at Walmart would double. and it would be unfair. the wealthy could buy a Prius and shop at Nieman Marcus. The 'genius' of income tax is you can target and tailor it to do the best good. no tax on the poor and maximum return on the rich with an equitable load on the middle class.

  • 9 years ago

    Its hard to say since many taxes go into the general fund. However, income taxes are the main source of government revenue, accounting for roughly 42% of all tax receipts, with payroll taxes coming in a close second with 40%. Payroll taxes are taxes for Social Security and Medicare.

  • 9 years ago

    55%.

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