Federal Tax System Overview
Equity, Efficiency, and Transparency Criteria
The primary purpose of the tax system is to collect the revenue needed to fund the operations of the Federal Government, including its promises and commitments. Tax revenues may not fully match government spending each year, but over time, the Federal Government needs to be able to raise sufficient revenue to cover its current and expected financial obligations. Decisions about spending and the role of government have a direct impact on the government’s ultimate revenue needs. Whether the resources to fund government spending are provided through taxes or borrowing has consequences for the economy and the Federal budget. Borrowing (which…
