What type of tax does personal income tax exemplify?

Personal income tax exemplifies derived tax revenue because it is a type of tax collected by the government based on individuals' earnings or income. Derived revenues are calculated based on the economic activities of individuals and businesses, such as income, sales, and property, which generate taxes that directly depend on those activities.

When individuals earn income, the government assesses a percentage of that income as tax. This creates a direct correlation between the economic activity (earning income) and the revenue that the government receives, which is characteristic of derived tax revenues. This differs from other forms of revenue collection because it is explicitly tied to individual or corporate performance in the economy, making it a fundamental aspect of the tax system.