Finance Week 11 P1

What are the three basic categories into which all taxes can be divided?

• Federal, State, and Local

• Buy, Earn, and Own

• Goods, Services, and Property

• Income, Sales, and Property

Sales taxes primarily provide revenue for which levels of government and fund what types of services?

• Federal government, funding national defense and infrastructure.

• State and local governments, funding education, transportation, and healthcare.

• Local governments, funding parks and public safety.

• Federal and state governments, funding social security and Medicare.

Which levels of government are income taxes a major source of revenue for?

• Local governments only.

• State and local governments only.

• Federal government and many state governments.

• Federal, state, and local governments.

What types of services are typically funded by property taxes at a local level?

• National defense and federal highways.

• State-wide healthcare programs and universities.

• Parks, public safety services, and additional school funding.

• Sales tax collection and state transportation projects.