Question

What is a potential solution for Springville's problem?

a) Increasing local taxes
b) Cutting services
c) Both a and b
d) None of the above

If Springville chooses to increase taxes, which type of tax might be considered?
a) Property tax
b) Income tax
c) Sales tax
d) All of the above

Answer 1

The potential solution for Springville's problem could be increasing local taxes and cutting services. If Springville chooses to increase taxes, they might consider property tax, sales tax, and income tax.

Step-by-step explanation:

The potential solution for Springville's problem could be c) Both a and b, which means increasing local taxes and cutting services. By implementing these measures, the local government can generate more revenue and reduce expenses, thus helping to balance the budget.

If Springville chooses to increase taxes, they might consider imposing different types of taxes, such as property tax, sales tax, and income tax. Property tax (a) is assessed on the value of real estate and depends on the property's worth. Sales tax (c) is charged at the point of sale of goods or services. Income tax (b) can be imposed by the federal, state, or local government, with tax rates varying by location and income level.