States compete with one another because economic development is the key to increasing the ________ that funds government services.
A)voter lists
B)population
C)tax base
D)tax incentives
E)number of companies within their borders

Question

Quizplus · Accepted Answer

The tax base refers to the total amount of money that a government can collect through taxes. States need a strong tax base to fund public services, such as infrastructure, education, and healthcare. Economic development plays a crucial role in increasing the tax base, which is why states compete with one another to attract businesses, investors, and skilled workers who can contribute to their economies. Therefore, option C is the correct answer.

States Compete with One Another Because Economic Development Is the Key