ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.

Detailed explanation-2: -Individual income taxes are the largest source of state tax revenue, though nine states forgo the taxation of wage income.

Detailed explanation-3: -Sources of Federal Revenue So far in FY 2023, individual income taxes have accounted for 52% of total revenue while Social Security and Medicare taxes made up another 34%. Government revenue also comes from payments to federal agencies like the U.S. Department of the Interior.

Detailed explanation-4: -The personal income tax is the state’s main revenue source, the property tax is the major local tax, and the state and local governments both receive revenue from the sales and use tax.

Detailed explanation-5: -Local governments collected $509 billion from property taxes in 2017, or 30 percent of local government general revenue. This was localities’ largest single source of tax revenue.