As a general rule, state governments prefer to increase user charges, gasoline taxes, and so-called sin taxes on alcohol and tobacco. They only reluctantly raise sales and income taxes.

Question

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State governments often prefer to increase user charges, gasoline taxes, and sin taxes because these are more politically palatable and can be targeted at specific behaviors or services. Raising sales and income taxes is generally less favored as it affects a broader segment of the population and can be more politically challenging.

As a General Rule, State Governments Prefer to Increase User