The two types of taxes that are most important to state and local governments as sources of revenue are
A)individual income taxes and corporate income taxes.
B)sales taxes and individual income taxes.
C)sales taxes and property taxes.
D)social insurance taxes and property taxes.

Question

Quizplus · Accepted Answer

Sales taxes and property taxes are the two types of taxes that are most important to state and local governments as sources of revenue. Sales taxes are collected on most goods and services sold within a state, while property taxes are levied on the value of real estate and other property. These taxes are important sources of revenue for state and local governments as they are generally stable and consistent sources of income. Individual income taxes and corporate income taxes tend to fluctuate more with changes in the economy, making them less reliable sources of revenue for governments. Social insurance taxes are collected mainly by the federal government and are not a significant source of revenue for state and local governments.

The Two Types of Taxes That Are Most Important to State