Question

exam lesson name: the political process
exam number: 700111rr
exam guidelines
exam instructions
question 20 of 20 :
select the best answer for the question

1. the largest proportion of federal revenues comes from

a. personal income taxes.
b. borrowing.
c. excise taxes.
d. social insurance taxes.
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Explanation:

To determine the largest source of federal revenues, we analyze each option:

• Option A: Personal income taxes are a major source of federal revenue in the US, typically accounting for a large proportion (e.g., historically a significant share, often more than other tax - related or borrowing sources for federal revenue).
• Option B: Borrowing is a way to finance deficits, not a primary revenue source for regular federal operations.
• Option C: Excise taxes (on specific goods like alcohol, tobacco) contribute much less than personal income taxes.
• Option D: Social insurance taxes (for programs like Social Security) are significant but generally less than personal income taxes as a proportion of total federal revenues.

Answer:

A. personal income taxes