Question

Which level of government relies the most on income tax?

a. federal
b. state
c. local

Answer 1

FEDERAL is the correct answer, as some states don't even have a deduction for state tax, such as Neveda and TN or TX. Cities do have taxes but it is a very small amount.

Answer 2

According to my research, there is no relevant difference with regard to which level of government depends the most on tax incomes. Nevertheless, the real fact is every State authority, all over the United States of America, relies on tax-incoming funds (indeed, all the fifty States take advantage of such collecting system). Many local governments, as well, are mostly financially backed by tax incomes.