Asked by Apiwe Xozwa on May 14, 2024
Verified
Statement I: The most important source of state tax revenue is the property tax while the most important source of local tax revenue is the sales tax.
Statement II: As a share of federal spending,Social Security and Medicare will continue to grow.
A) Statement I is true and Statement II is false.
B) Statement II is true and Statement I is false.
C) Both statements are true.
D) Both statements are false.
State Tax Revenue
The income that a state government receives from taxation of individuals and businesses within its jurisdiction.
Federal Spending
Federal spending refers to the government's expenditure on goods, services, and public projects, financed by taxes and borrowing.
- Determine the chief sources of taxation revenues and the allocation of government expenditures.
- Evaluate the impact of tax strategies and state spending on societal and economic dynamics.
Verified Answer
DB
Diana BatistaMay 19, 2024
Final Answer :
B
Explanation :
Statement I is false because the most important source of local tax revenue is typically the property tax, not the sales tax. Statement II is true as projections indicate that Social Security and Medicare costs will indeed continue to grow as a share of federal spending, primarily due to aging populations and rising healthcare costs.
Learning Objectives
- Determine the chief sources of taxation revenues and the allocation of government expenditures.
- Evaluate the impact of tax strategies and state spending on societal and economic dynamics.