State and local governments
A)use a mix of taxes and fees to generate revenue.
B)are required by federal mandate to levy income taxes.
C)are required to tax property at a standard rate set by the federal government.
D)must tax wages more heavily than interest and dividend income.

Question

Quizplus · Accepted Answer

State and local governments generate revenue through a variety of means, including taxes (such as sales, income, and property taxes) and fees (such as licensing and service fees). There is no federal mandate requiring them to levy income taxes, nor is there a standard property tax rate set by the federal government. Additionally, there is no requirement for them to tax wages more heavily than interest and dividend income.

State and Local Governments