(I) Sales taxes, income taxes, property taxes, and grants from higher levels of government are the major sources of state and local revenue in the United States. (II) Including both the excess burden and administration, enforcement, and compliance costs of taxes in the United States, $1 in taxes to the government imposes a cost of somewhere between $1.20 and $1.30 on the economy.

Question

Quizplus · Accepted Answer

Both statements are true. Statement I lists the major sources of state and local revenue, while statement II discusses the cost of taxes on the economy, taking into account excess burden and administrative costs.

(I) Sales Taxes, Income Taxes, Property Taxes, and Grants from Higher