In the 19th century, federal government funding relied on which combination?

• A. Tariffs and excise taxes on specific products
• B. Income taxes on households
• C. Corporate taxes
• D. Property taxes

Answer: (A)

The main idea is how the federal government financed its operations in the 19th century. Tariffs on imported goods were the primary revenue source, helping fund the government as trade activity brought in significant funds. Excise taxes on specific products, like alcohol and tobacco, provided additional revenue. A broad, permanent income tax wasn’t the norm for most of the century (it appeared briefly during the Civil War but wasn’t sustained), and corporate taxes didn’t become a major, reliable source until the 20th century. Property taxes are mainly collected by state and local governments, not the federal government. So, tariffs and excise taxes on specific products best describe federal funding in the 19th century.