Prepare for the American Government CLEP Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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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 legislative branch, which consists of the Senate and the House of Representatives, has the power to levy taxes in the United States. This is because the Constitution grants Congress the power to "lay and collect Taxes, Duties, Imposts and Excises." The executive branch, headed by the President, does not have the authority to directly levy taxes but does play a role in the budget and tax policies. The judicial branch, made up of the federal courts, does not have the power to levy taxes. While state governments can also levy taxes, they do so to support their own state expenses, not for the entire country.