Final answer:
Taxes on retail sales, income, and gasoline are examples of state and local tax revenues, which include sales taxes, property taxes, and income taxes. Sales taxes are generally regressive, and excise taxes on specific goods, such as gasoline, also share this quality.
Step-by-step explanation:
Taxes on retail sales, income, and gasoline are all examples of state and local tax revenues. These taxes serve as crucial sources of funding for state and local governments, which have seen their tax revenue increase as a share of GDP to match rising expenditures over recent decades. Sales taxes, which include taxes on retail transactions, are often a large portion of such revenue, and while some goods may be exempt (like food and medicine), they tend to be regressive, impacting lower-income individuals more heavily as they spend a larger proportion of their incomes on taxable goods.
State and local governments also raise funds through other means like property taxes and income taxes, but these measures can vary widely from one jurisdiction to another. For instance, while sales taxes are a common form of taxation, some areas might rely more on property taxes or taxes on income. Additionally, some states may impose excise taxes, also known as sin taxes, on specific goods such as gasoline and tobacco, which are considered regressive as they take up a larger percentage of income from lower earners compared to higher earners.