### 2.3 Consumption Taxes

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• Math Help

The graph in Example 6 is called a stacked area graph. It shows five sources of tax revenue for the federal government. From bottom to top:

• Individual income tax
• Corporate income tax
• Payroll tax
• Excise tax
• Other

To determine the percent of each tax, you need to estimate the height of its shaded area.

• Consumer Suggestion

Have you ever wondered how the government spends our tax money? The largest areas of spending include:

• Defense and security
• Social security
• Medicare, Medicaid, and CHIP

If you'd like more information on government spending, visit the Center for Budget and Policy Priorities.

• Checkpoint Solution
1. The total taxes represented by the circle graph are

The percent represented by individual income tax is

This is less than the percent for individual income taxes for the federal government.

2. The percent represented by corporate income tax is

This is less than the percent for corporate income taxes for the federal government.

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