Question

Federal, state, and local governments tax their citizens to ________ for various programs and services. The federal government's main income includes ________ taxes, while state and local governments rely heavily on ______.

1) generate revenue, income, sales
2) provide funding, property, excise
3) collect money, corporate, estate
4) raise funds, payroll, gift

Answer 1

Federal, state, and local governments impose taxes to generate revenue, with the federal government depending on income taxes and state and local governments on sales and property taxes. State and local funding is also supplemented by intergovernmental revenues for various services.

Step-by-step explanation:

Federal, state, and local governments tax their citizens to generate revenue for various programs and services. The federal government's main income includes income taxes, while state and local governments rely heavily on sales and property taxes.

At the federal level, a significant portion of revenue comes from individual income taxes, following the ratification of the Sixteenth Amendment allowing Congress to impose income taxes.

On the other hand, state and local governments have seen a rise in taxes as a share of GDP over recent decades to fund a rising number of services and infrastructure, with main resources coming from sales taxes, property taxes, and intergovernmental revenues.

These sources can vary widely between different states, with some relying more on certain types of taxes than others. Intergovernmental revenues are particularly important for state and local funding, allowing them to provide services such as welfare, healthcare, and education.

Therefore the correct answer is 1) generate revenue, income, sales.