Local governments wanting to keep their tax base from eroding away should choose _____.
A)income taxes
B)sales taxes
C)property taxes
D)excise taxes

Question

Quizplus · Accepted Answer

Property taxes are a stable and reliable source of revenue for local governments as they are collected annually based on the assessed value of properties. Unlike sales and excise taxes, property taxes are not affected by fluctuations in the economy or consumer behavior. Income taxes may also be volatile and dependent on individual earnings, making them a less reliable source of revenue. Therefore, local governments wanting to keep their tax base from eroding away should choose property taxes.

Local Governments Wanting to Keep Their Tax Base from Eroding