Which of the following statements about state income taxes is correct?
A)Some states do not tax income at all.
B)If states tax income,they must follow federal guidelines for designing the tax structure.
C)States are not allowed to have a higher marginal tax rate than the federal marginal tax rate.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Some states, such as Texas and Florida, do not have a state income tax.

B and C are both incorrect. States have the ability to design their own tax structure, and they are not required to follow federal guidelines or match federal tax rates. Some states have higher marginal tax rates than the federal rate.

Which of the Following Statements About State Income Taxes Is