Governments in the United States Use a Broad Portfolio of Taxes

question 8

Multiple Choice

Governments in the United States use a broad portfolio of taxes. Not all levels use the same taxes to the same degree. Which of the following statements is not correct?

• A) At least some local governments in every state levy a property tax.
• B) Most, but not all, states levy a sales tax on all retail purchases or sales of tangible personal property, except transactions specifically exempt.
• C) The doctrine of pre-emption dictates that, if the federal government taxes a particular commodity, states are not permitted to tax the commodity without specific federal authorization.
• D) Most, but not all, states levy both individual and corporate income taxes.

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Definitions:

Cutthroat Competition

An extremely aggressive competition where companies use strategies to undercut their rivals' prices.

Cartel

A coalition of producers or vendors aimed at keeping prices elevated by limiting competitive practices.

Concentration Ratio

Concentration ratio is a measure of the total output produced in an industry by a given number of firms, indicating the level of market competition.

Sales

The activities involved in selling goods or services to consumers or other businesses, generating revenue.