Publication Date: June 2007
Publisher: Tax Policy Center
Author(s): Roberton Williams
Research Area: Banking and finance
Keywords: Economy; Federal Budgets & Fiscal Policy; Taxes, the Budget, and the Economy; General Tax Policy
The past 75 years have seen marked changes in the sources of federal revenue. In 1934 excise taxes accounted for almost half of all revenue, and income taxes were about one-fourth; payroll taxes barely registered on the scale. Individual income taxes and payroll taxes now account for nearly 80 percent of federal revenue and corporate income tax revenue makes up about two-thirds of the rest. This article discusses these changes in the shares of federal tax receipts by source from 1934 to 2006.