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Does the Federal Reserve Pay Taxes?

Does the Federal Reserve pay taxes?

  • Answer:

    Sort of. As a quasi-government agency, it does not pay income taxes like a for-profit corporation. However, any surpluses generated by the Federal Reserve are required to be paid back to the federal government. This makes its "tax rate" effectively 100%.

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Not in the traditional sense. The Fed is a quasi-governmental agency and those don't pay taxes. Another good example is the US Postal Service, which does not pay taxes either. That said, any gains generated by The Fed are returned to the US Treasury in full, effectively making their "tax rate" 100%.

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Of course not. The Fed. Reserve is the bank of the U.S., so if you know how a bank works then you know, if not it's a loan they give to the U.S. per say 50 Billion dollars, then the U.S. receives that loan then the U.S. pays it back with interests. But since the Fed. Reserve is the head bank, then they don't pay taxes.

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