Question

Which of the following statements is correct? a. National defense and health are the two largest spending categories for the federal government. b. Welfare programs and highways are the two largest spending categories for state and local governments. c. Sales taxes and property taxes are the two most important revenue sources for state and local governments. d. Corporate income taxes are the largest source of revenue for the federal government.

Answer 1

Answer: The correct answer is : c. Sales taxes and property taxes are the two most important revenue sources for state and local governments.

Explanation: The local and state governments of the United States use various taxes to increase the income needed to cover the required expenses. General sales taxes have historically been the largest source of income for state governments.