Macroeconomics › Section Q · Government budgets and fiscal policy › Topic Q.2
Taxation
Taxes pay for almost everything governments do, and how they are designed decides who carries the burden. This topic explains the main US taxes, how brackets and payroll caps really work, and how to tell a progressive tax from a regressive one.
In this topic
- Where the money comes from
- Progressive, proportional and regressive
- Marginal and average rates
- The 2026 income tax schedule
- Worked example: a single filer's income tax
- Payroll taxes
- Worked example: payroll tax at two incomes
- The federal revenue mix
- Recent tax law: the 2025 act
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…