Statement I: The most important source of state tax revenue is the property tax while the most important source of local tax revenue is the sales tax.
Statement II: As a share of federal spending,Social Security and Medicare will continue to grow.

Question

Quizplus · Accepted Answer

Statement I is false because the most important source of local tax revenue is typically the property tax, not the sales tax. Statement II is true as projections indicate that Social Security and Medicare costs will indeed continue to grow as a share of federal spending, primarily due to aging populations and rising healthcare costs.

Statement I: the Most Important Source of State Tax Revenue