Despite several advantages of transaction taxes, such as their simplicity, they are not the only source of revenue for the federal government. Why are income taxes still used as a significant source of revenue for the government? Question 22 options: Income taxes can be applied with greater consistency than transaction taxes. Income taxes encourage individual initiative to work and invest, while transaction taxes discourage these activities. Income taxes are less regressive than transaction taxes. Income taxes result in lower income individuals paying a higher proportion of their income in taxes