Which statement about taxation in the United States is TRUE?
A) Subnational governments rely more on consumption taxes than does the federal government.
B) Subnational governments rely more on individual income taxes than does the federal government.
C) Subnational governments rely less on wealth taxes than does the federal government.
D) Subnational governments rely less on property taxes than does the federal government.

Question

Quizplus · Accepted Answer

Subnational governments in the United States, such as states and municipalities, tend to rely more on consumption taxes (e.g., sales taxes) for their revenue compared to the federal government, which primarily generates revenue through individual income taxes and payroll taxes.

Which Statement About Taxation in the United States Is TRUE