The federal govt imposes a wide variety of taxes on income, transactions, and
property, categorized into major types that drive the vast majority of govt revenue.
Individual Income Taxes: This is the largest source of federal revenue. For the 2025 and 2026 tax years, there are seven progressive income tax brackets/rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Payroll Taxes (Social Insurance Taxes): These are deducted from employee paychecks to fund Social Security and Medicare.
Corporate Income Taxes: A flat rate of 21% is applied to the taxable income of C corporations.
Excise Taxes: Special taxes on specific goods or services, such as fuel, tobacco, alcohol, and air travel.
Estate and Gift Taxes: Taxes on the transfer of large, high-value estates or large monetary gifts.
Customs Duties (Tariffs): Taxes on imported goods. (Tax Policy Center)
Progressive Structure: The federal income tax system uses seven different rates that rise with income.
Payroll Dominance: For most low- and middle-income taxpayers, payroll taxes (Social Security/Medicare) often exceed federal income tax liability.
Capital Gains: A separate, lower tax rate (0%, 15%, or 20%) applies to long-term capital gains and dividends.
Total Revenue: In FY 2024, approximately $5 trillion in revenue was collected through these combined mechanisms. (Tax Policy Center)
We do not know the total tariffs collected from American importers and passed on to consumers.
Tariffs are not regressive and get paid by all consumers, even those on food stamps