federal tax policy

Federal tax policy refers to the government's approach to collecting revenue through taxes, primarily from individuals and businesses, to fund public services like defense, education, and infrastructure. It involves setting tax rates, determining what income or activities are taxable, and creating rules for deductions and credits. These policies influence economic behavior and income distribution, aiming to balance generating revenue with promoting fairness and economic growth. Changes in tax policy can impact saving, investment, and overall economic health, making it a crucial tool for achieving national policy goals.