How did the TCJA affect tax expenditures? Q.How did the TCJA affect tax expenditures? A.The TCJA reduced some tax expenditure provisions, eliminated others, and introduced and expanded still others. In addition to these direct changes in tax expenditure provisions, an increase in the standard deduction and lower individual and corporate tax rates reduced the number of taxpayers using tax expenditure provisions and the value of the tax benefits they receive. Read more about How did the TCJA affect tax expenditures?
What are the sources of revenue for the federal government? Q.What are the sources of revenue for the federal government? A.About 50 percent of federal revenue comes from individual income taxes, 7 percent from corporate income taxes, and another 36 percent from payroll taxes that fund social insurance programs (figure 1). The rest comes from a mix of sources. Read more about What are the sources of revenue for the federal government?
How does the federal government spend its money? Q.How does the federal government spend its money? A.Federal spending totaled $4.4 trillion in 2019. About 62 percent of the total was for programs not subject to regular budget review, while nearly 30 percent covered discretionary programs for which Congress must regularly appropriate funds. Eight percent went for interest on government debt (figure 1). Read more about How does the federal government spend its money?
