Where does all of the federal government's revenues come from?

[Kregisen]

In my accounting class today, my professor (unfortunately she's a liberal who brings up her political views a lot in a non-political class...I've had to argue with her a little bit already) brought up today that 81% of all income taxes is paid for by individuals and only 19% is paid for by corporations.

Is that true? Because if I'm not mistaken I believe Ron has pointed out that individual income taxes only account for about a third of the federal government's revenue and we could get rid of it entirely if we go back to 2000 spending levels.

So what's the truth here? I was under the impression that vast majority of the federal government's revenue comes through income taxes, both corporate and individual, but this doesn't quite stack up. Frankly I don't believe the 81-19% ratios at all.

[Kregisen]

I could've googled this before asking the question, but instead decided to ask it first so other people can see the answer as well.

http://www.taxpolicycenter.org/briefing-book/background/numbers/images/Numbers_Figure-1_What-are-fed-govts-sources-of-revenue_3.gif

Payroll taxes is just another form of individual income tax right? As far as the employer is concerned it's just paying its employee more money eventhough some of that money is taxed.

[TheNcredibleEgg]

Your professor is correct - mostly.

One key fact that she omitted tho is that the total of individual incomes is vastly greater than the total of corporate profits:


American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms

I could not find a curent quote for total individual incomes - but in 2005 it was 6.5T.

So individuals earned 6.5T (2005)
Corporations earned 1.7T (2010) (and some of that is overseas earnings.)

So, of course, individuals pay more in taxes. They earn so much more.

[QueenB4Liberty]

Ok I thought income taxes were payroll taxes?

[HOLLYWOOD]

Here are the Daily and Monthly reporting on everything the US Treasury Collects and Pays out. It's all you need to see the dismal path of the US government. You can extrapolate data over previous months/fiscal years to see the trends.

Daily Report: http://www.fms.treas.gov/dts/index.html

Monthly Report: http://www.fms.treas.gov/mts/index.html

[Carson]

Printing presses.

The total money supply has been counterfeited over, and over, and over, many, many times. When the government creates fake money and introduces it into the money supply it devalues or currency. See in the chart below the little bumps during early times of war? After the wars were over it was removed from the system until a dollar again valued at a dollar. It looks like they are at war with all of us now.

http://photos.imageevent.com/stokeybob/followthemoney/RobertSahrcurrencyvalue.jpg

http://photos.imageevent.com/stokeybob/followthemoney/Supersingle640x537.jpg

Here is how the stock market looks in comparison. All this time people thought they were making a killing the governments inflation was taking them to the cleaners. The government cut itself in to the profits through capital gains taxes.

Actually since most of them were false profits because of the devaluation of the dollar it was basically a flat out rip-off on so many levels.

http://photos.imageevent.com/stokeybob/followthemoney/30DJIA.jpg

[A Son of Liberty]

Federal Government's "revenues"?

http://www.nakedcapitalism.com/wp-content/oldimages/nakedcapitalism/4/_qFiyjwMlP0Y/SexvynprY_I/AAAAAAAAAt4/3ldz0laW2pg/s400/shake-down-money.jpg

[Zippyjuan]

"Payroll taxes" are things like Social Security taxes and Medicare taxes.

[TheBlackPeterSchiff]

Printing presses.

The total money supply has been counterfeited over, and over, and over, many, many times. When the government creates fake money and introduces it into the money supply it devalues or currency. See in the chart below the little bumps during early times of war? After the wars were over it was removed from the system until a dollar again valued at a dollar. It looks like they are at war with all of us now.

http://photos.imageevent.com/stokeybob/followthemoney/RobertSahrcurrencyvalue.jpg

http://photos.imageevent.com/stokeybob/followthemoney/Supersingle640x537.jpg

Here is how the stock market looks in comparison. All this time people thought they were making a killing the governments inflation was taking them to the cleaners. The government cut itself in to the profits through capital gains taxes.

Actually since most of them were false profits because of the devaluation of the dollar it was basically a flat out rip-off on so many levels.

http://photos.imageevent.com/stokeybob/followthemoney/30DJIA.jpg

Dude........this is insane!! Thank you for posting this!!

[aGameOfThrones]

Federal slaves... I mean U.S citizens?

[Carehn]

Tax is Tax. Its money coming from the market to the furness. Some may try and direct the destructive weapon of tax in ways to kill parts of the market they don't like or help parts of the market they do. But this is all one in the same. To say pay role tax is not corporate tax is nit picking. The price of labor is still partly on the market. Taxing a corporation or pay role pulls the cash out of the same ass. And taxing ... gas or beer or land is the same in the end as well. It shrinks the pie we all must live on some taxes just shrink parts of the pie 1st.

To nit pick about who should be taxed is a way to evade the real problem. Don't fall for it bro. If your rent and they raise property taxes don't you think the renter will fill that? Yep.

Just tell your "professor" - 'those who can do, and those who can't suck the life blood out of the rest by latching on to a government funded college and try justifying it by smashing the minds of every student they can, as if only enough people believed that 2+2=5 maybe it could be true.

College is for suckers.