Question

Give examples and describe the various means by which the US government collects revenues and then spends or redistribute the gained revenues.

Answer 1

here we are taking an example of us government tends to 2000 to 2012

Redistribution of income and redistribution of wealth

the transfer of income and of wealth (including physical property) from some individuals to others by means of a social mechanism such as taxation, charity, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

• American’s lowest-income families receive $5.28 worth of government spending (federal, state, and local) for every $1 they pay in total taxes. Middle-income families receive $1.48 in total spending per tax dollar, while America’s highest-income families receive $0.25 cents in spending for every dollar of taxes paid.
• Interestingly, we find that the biggest net beneficiaries of this increase in redistribution from 2000-2012 are middle-income families and working lower-income families (those in the second quintile).

US Government Taxes and Spending in 2012

In 2012, governments at all levels collected $4.2 trillion in taxes and other receipts and spent $5.5 trillion on government programs, thereby running a combined deficit of $1.3 trillion

As one can see in Chart 1, high-income families paid far more in taxes than lower-and-middle-income families. For example, the average amount of taxes paid by families in the top quintile

early twenty times greater than the average of $6,331 paid by families in the bottom quintile

Chart 2

it presents the tax and spending relationships as a ratio to give us another way of understanding how much families receive in spending for every dollar that they

Trends from 2000 to 2012

• This section addresses the question of how much government redistribution via fiscal policy has changed since the turn of the centur
• Fiscal policy in the United States has undergone many significant changes since 2000, especially at the federal level. From 2001 through 2006 gone through many changes
• These changes in fiscal policies and economic conditions over the past twelve years have had a measureable impact on the distribution of government taxes and spending

Conclusion

When analyzed in the aggregate, governments at all levels in the United States redistribute a significant amount of money via tax and spending policies, although the magnitude depends on the methodological assumptions made with regard to the distribution of major public goods like national defense and the budget deficit