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Why Are Revenue Shortfallssuch a Problem for the Texas Tax

Question 14

Multiple Choice

Why are revenue shortfallssuch a problem for the Texas tax system?


A) The state relies too much on sales taxes.
B) ​When the economy is weak, people stop buying and thus stop paying sales taxes.
C) ​The system relies heavily on spending by low- and middle-class individuals.
D) ​All of these are reasons for revenue shortfalls.
E) ​None of these is a reason for revenue shortfalls.

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