Question

Why are taxes paid to local, state, and national governments in the United States? A. The national government has a difficult time collecting taxes from all citizens. B. The local and state governments use their taxes to pay taxes to the national government. C. Each level of government equally provides revenue for every service in the United States. D. Different levels of government provide different services that must be paid for by taxes.

Answer 1

The correct answer is:

D. Different levels of government provide different services that must be paid for by taxes.

The Constitution gives each level different powers. Most state and local government revenues come from sales taxes, grants from the federal government, personal income taxes, and property taxes. The bulk of state and local government revenue is spent for education, public welfare, road construction and repair and public safety.  They all have different responsibilities and they each need to pay for them.