The ________ Tax Is a Major Revenue Source for Local

question 97

Multiple Choice

The ________ tax is a major revenue source for local governments, even though it is considered the "least fair" or the "worst" tax in U.S.public opinion surveys.

• A)general property
• B)individual income
• C)corporate income
• D)sales
• E)severance

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Definitions:

CCA Tax Shield

A deduction that allows businesses to depreciate the cost of capital assets over time against their taxable income, reducing the tax payable.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the proportion of additional income paid in taxes.

Relevant Discount Rate

The interest rate used to convert future payments or receipts into their present value, often reflecting the risk associated with the cash flows.

Salvage Value

The estimated resale value of an asset at the end of its useful life, reflecting what a company expects to recover, less disposal costs, once an asset is no longer needed for business operations.