Question : Which of the following is a common source of revenue for state governments in the United States?
Option 1: Property taxes
Option 2: Sales taxes
Option 3: Income taxes
Option 4: All of the above
Correct Answer: All of the above
Solution : The correct answer is (d) All of the above.
State governments in the United States commonly generate revenue from a variety of sources, including property taxes, sales taxes, and income taxes. Let's look at each option:
(a) Property taxes: Property taxes are levied on real estate and personal property owned by individuals and businesses within a state. These taxes contribute to the revenue of state governments.
(b) Sales taxes: Sales taxes are imposed on the sale of goods and services. State governments often levy sales taxes on retail purchases made within their jurisdiction, generating revenue for their budgets.
(c) Income taxes: State governments have the authority to impose income taxes on individuals and businesses. Income taxes are levied based on the income earned by individuals or the profits of businesses operating within the state.
Therefore, all three options—property taxes, sales taxes, and income taxes—are common sources of revenue for state governments in the United States. Hence, the correct answer is (d) All of the above.
