American Government CLEP Prep Practice Exam

Which branch of government has the power to levy taxes in the United States?

1. Executive branch.

2. Legislative branch.

3. Judicial branch.

4. State governments.

The correct answer is: Legislative branch.

The Executive branch does not have the power to directly levy taxes as this is a power reserved for Congress. While the Executive branch may propose taxes, Congress holds the ultimate authority in determining and collecting taxes. The Judicial branch does not have the power to levy taxes as this falls outside of their jurisdiction. State governments also do not have the sole power to levy taxes in the United States as they are subject to federal laws and regulations. In the United States, the Legislative branch, specifically the House of Representatives and the Senate, has the power to propose, debate, and ultimately pass legislation related to taxes. This includes setting tax rates, implementing new taxes, and collecting revenue. Therefore, B Legislative branch is the correct answer.