Which of the following statements is true of individual income taxes?

Question

Quizplus · Accepted Answer

Individual income tax is one of the two largest revenue sources for state government, the other being sales tax. The statement in option A is incorrect as state individual income taxes vary from state to state and do not rise as sharply as the federal income tax. Option B is incorrect as not all states allow local governments to levy income taxes. Option D is incorrect as individual income tax is not a significant source of revenue for local government. Option E is incorrect as a few states do not collect individual income taxes, such as Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Which of the Following Statements Is True of Individual Income