Taxation policy determines how governments raise revenue to fund public services and programs. Debates center on the appropriate level of taxation, who should bear the tax burden, the balance between income and consumption taxes, and how tax policy affects economic growth, investment, and inequality. The U.S. employs a mix of progressive income taxes, payroll taxes, corporate taxes, and various state and local taxes.

The U.S. national debt has grown to unprecedented levels, raising questions about fiscal sustainability, intergenerational equity, and appropriate government spending and taxation levels. Debates center on whether debt levels are dangerous, how to address deficits, and the proper role of government in the economy.