The Two Types of Taxes That Are Most Important to State

question 61

Multiple Choice

The two types of taxes that are most important to state and local governments as sources of revenue are

• A)individual income taxes and corporate income taxes.
• B)sales taxes and individual income taxes.
• C)sales taxes and property taxes.
• D)social insurance taxes and property taxes.

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Definitions:

Bondholder

An individual or entity that owns a bond issued by a borrower, entitling them to receive interest payments and the return of principal.

Income Tax

Taxes levied by the government on the income generated by businesses and individuals.

Stockholders

Individuals or entities that own shares in a corporation, also commonly referred to as shareholders.

Borrowed Money

Funds that are obtained through loans or credits, which must be repaid with interest.