The two main sources of government revenue are .

For a modern economy like the United States, there are actually three main sources of government revenue. This includes; Income Tax, Corporate Tax and Payroll taxes.

Explanation:

While a majority of revenue is directly generated from these three sources a large revenue is collected from other indirect taxes as well. This can include custom duties on imported products, estate taxes, vehicle registrations, licenses etc.

The aim is to collect revenue that will help in smoothly running the government and provide public goods such as roads, hospitals and schools. In countries such as Saudi Arabia, there are no income taxes while in countries such as Norway, they can be as high as 60% of the income of a person.

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