Infographic: How the U.S. Tax System Works

One issue that most lawmakers and voters agree on is that our tax system needs reform. It is confusing, complex, and favors some individuals and economic activities over others. Exactly how to revise the tax system, however, can be a hotly contested issue — which is further complicated by the fact that there are common misconceptions about how the current system works.

Before we can begin to assess the value of specific proposals, it helps to get the big picture on how the system works. Check out the infographic below for an overview of the system, and then test how much you have learned with our tax quiz.


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Infographic: How the U.S. Tax System Works

Last updated 7/24/17


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Tweet: Individual income #taxes account for almost half of the federal government's revenue https://ctt.ec/MZbnf+ via @pgpfoundation #TaxReform

Tweet: Tax myth: Low-income earners don't pay any federal #taxes https://ctt.ec/MP6fQ+ via @pgpfoundation #TaxReform

Tweet: Total tax burdens are lower in the U.S. than among other advanced nations https://ctt.ec/W8U1d+ via @pgpfoundation #TaxReform

Tweet: #TaxBreaks cost more than what the government spends on #SocialSecurity, defense, or #Medicare https://ctt.ec/cGq44+ via @pgpfoundation

Tweet: What is the #TaxReform opportunity? https://ctt.ec/42GK4+ via @pgpfoundation

Tweet: What is the #TaxReform opportunity? https://ctt.ec/1Je76+ via @pgpfoundation

COALITION FOR FISCAL AND NATIONAL SECURITY

A new statement urging policymakers to stabilize our national debt and renew and rebalance our national security strategies.

THE TAX REFORM OPPORTUNITY

Video: Our tax code is complex, unfair, and insufficient. Learn more about the opportunity we have to reform and improve tax policy.