What Is the Argument Commonly Used by Supporters of a State

question 45

Multiple Choice

What is the argument commonly used by supporters of a state income tax?

• A) It will probably be quite regressive.
• B) It is a fairer but highly unreliable source of revenue.
• C) It makes Texas more attractive to businesses that are considering relocating from out of state.
• D) It is a fair and more reliable source of revenue.

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Definitions:

Clinton

A reference to Bill Clinton, the 42nd president of the United States, serving from 1993 to 2001, known for economic policies leading to budget surpluses and welfare reform.

Stimulus Package

A package of economic measures put together by a government to stimulate a struggling economy, typically including tax cuts, spending increases, and monetary policy adjustments.

High-Income Households

Families or individuals with earnings significantly above the average for a given area, often associated with higher consumption and investment capacities.

Stimulus Program

A government initiative designed to stimulate economic growth during a recession by increasing public spending or cutting taxes.