State and local governments
A)are funded entirely by their own tax base.
B)receive the majority of their tax revenues from corporate income taxes.
C)are generally not responsible for collecting sales taxes.
D)receive some of their funds from the federal government.

Question

Quizplus · Accepted Answer

State and local governments receive some of their funds from the federal government through grants and other programs. They also collect their own taxes, which make up a significant portion of their funding. Corporate income taxes are just one of many types of taxes that state and local governments may collect, and they are not the main source of revenue for these governments. Finally, while some states do not collect sales taxes, many states and localities do rely on sales taxes as a source of revenue.

State and Local Governments