chapter 9

________________________ by the federal government is the third largest source of federal revenue.

Borrowing

The second most important federal revenue source is________________, the Federal Insurance Contributions Act tax levied on both employees and employers for Social Security and _______________________________.

FICA, Medicare

The most important sources of government revenue are:

Individual income tax, social security tax, borrowing, corporate income tax, and FICA

_______________________ a tax on tangible and intangible possessions, is the second largest revenue source.

Property tax

The ------------------- is the tax a corporation, as a separate legal entity pays on its profits.

corporate income tax

The federal government also receives other revenues from _______________________ , estate and gift taxes, custom duties and miscellaneous fees.

excise taxes

All but seven states also rely on ____________________ tax for revenue.

individual income

The largest source of revenue for local government is _____________________.

intergovernmental revenue

The largest source of state revenue consists of _____________________ funds collected by one level of government that are distributed to another level of government for expenditures.

intergovernmental revenue

The individual income tax is usually paid over time through a

payroll withholding system- a system that requires an employer to automatically deduct income taxes from an employee's paycheck and send it directly to the IRS.

Local revenue is also raised from_________________, sales taxes, and a variety of other sources.

public utilites

Property taxes on _______________________ raise the most revenue.

real estate

Most states also use_________________ a general tax levied on consumer purchases of nearly all products.

sales tax