American Government Chapter 11, Section 6: Financing State and Local Government
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Terms to Know:
Section 6: Financing State and Local Government
- The single most important source of revenue among the states today is the sales tax.
- Selective sales tax are put on items such as gasoline, tobacco products, alcoholic beverages, and certain other commodities.
- The sales tax is considered a regressive tax because it tends to place the greatest burden on those with lower incomes.
- The federal income tax is progressive, persons with greater incomes pay at a higher rate.
Property Tax
- Today, the property tax is the chief source of income for local governments.
- Personal property includes personal possessions.
- Tangible property includes movable property which is easy to assess.
- Intangible personal property can be bank accounts, personal property, and bonds.
- Many states levy a severance tax for the removal of natural resources, such as coal, oil, and fish.