Question

Which statement about taxation in the United States is TRUE? O a State and local governments rely more on sales and property taxes than does the federal government. b. State and local governments rely more on individual income taxes than does the federal government. O c. State and local governments rely less on wealth taxes than does the federal government. d. State and local governments rely less on property taxes than does the federal government. QUESTION 2 1 po Which statement about the Laffer curve is TRUE? a As the tax rate rises from 0% to 100%, tax revenues rise at a constant rate. To b. As the tax rate rises from 0% to 100%, tax revenues rise and then fall. c. As the tax rate rises from 0% to 100%, tax revenues rise but at a diminishing rate. d. As the tax rate rises from 0% to 100%, tax revenues fall at a constant rate.

Answer 1

1.income from sales and other taxes accounts for almost more than 50% of the overall revenue of the state government while it does not accounts for more than 20% of the Federal government so local government rely more on sales and property taxes while Federal government relies more on income taxes.

all other taxes like individual income tax or wealth tax or property tax does not account for much of the income of state government so All statement except option (A) are false.

So the correct answer would be option( A).