Question

Which scenario below best shows how local taxes support the economy?

Answer 1

The correct answer is C) a special one year tax pays for building new schools.

The scenario that best shows how local taxes support the economy is "a special one year tax pays for building new schools."

Local taxes support the economy because they often pay for road repair, firefighters, police officers. These services create jobs and help society run smoothly.

The local authority is responsible for asses and collects local taxes. It comes from property taxes and funds important public services that allow a community to function and operate with no problems. Examples of these services are the garbage collection, new schools,  the salary of policemen and firefighters, the maintenance of good road conditions, sewer maintenance, among many others.

If people pay their taxes in time, the money collected is applied to the creation of jobs to help the county or municipality to be administered in the correct way.

Answer 2

A special one-year tax to help pay for building new schools would serve as an example of how local taxes support the economy. Public school funding is usually based on local taxes and therefore, this example is most likely exemplary of this.