Internal Revenue Service United States Department of the Treasury
Theme 4: What Is Taxed and WhyLesson 2: Taxes in a Market Economy


Activity 3: Income Tax Revenue

When incomes go up, tax revenues often rise. Take a virtual field trip to learn more about changes in Median Household income from 1967-2001. Go to the U.S. Census Bureau Income 2001 to see the Income 2001 Graph. Read the question below and type your answer in the spaces provided. To assess your answer, click the Check My Answers button at the bottom of the page.

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What effect would you expect to see on government income tax revenue during this same period?


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