Individual taxes are the largest source of revenues for the federal government, representing more than half of all revenues collected. They include taxes levied on wages and salaries, income from investments, and other income.

The individual tax code is progressive, meaning that those with higher incomes pay a greater share of their earnings in taxes. At the same time, high earners benefit disproportionately more from tax expenditures, also known as “tax breaks,” than lower earners.

Many economists agree that simplifying the tax code could have fiscal and economic benefits. Tax reform done right would promote economic growth, make our fiscal outlook more sustainable, reduce the complexity and burden of compliance, and increase the system’s transparency and fairness by treating individuals and businesses in similar circumstances more equally.

Below is a selection of key charts on individual income taxes in the United States and how they fit within the federal budget.