Question

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

Answer 1

Answer:

A special one year tax pays for building new schools.

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.  

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Answer 2

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