The tax that generates the most revenue for state and local government is the
A)corporate income tax.
B)individual income tax.
C)property tax.
D)sales tax.

Question

Quizplus · Accepted Answer

The sales tax generates the most revenue for state and local governments. This is because it is a consumption tax that is levied on most goods and services purchased within the state or locality, and therefore it applies to a wide range of economic activity. In contrast, the corporate income tax typically applies to a smaller number of businesses and the individual income tax is ultimately based on individuals’ earnings and thus can vary greatly based on economic conditions and individual behavior. The property tax is also an important source of revenue for many local governments, but it is generally less significant than the sales tax in terms of total revenue generated.

The Tax That Generates the Most Revenue for State and Local