Question

If the statement is false, make a correction to make the statement true. Each question is worth 5 points (for a total of 60 points). Partial answer (that is, the statement is false, but your correction is wrong) will get ½ credit.

7. The rationale for the increased reliance by the States for revenue generated by gambling is that these sources of funds (lottery, casinos, racing) have an effective tax rate that is lower than most other taxes, making this fiscal choice “painless”. True/False __________________ Correction to make true _________________________________________________________________________________

8. The compensating use tax is used as to implement the origination principle of the sales tax. True/False _______________ Correction to make true ____________________________________________________________________________________

9. Personal income taxes have become less important as a source of revenue for State governments over the last 30 years. True/False _______________ Correction to make true ____________________________________________________________________________________

Answer 1

7). "False"

It's no secret that the government makes some income from gambling. But, many would be surprised to find that total gaming brings in nearly $100 billion in tax revenue each year.

8), "False"

Sales tax is an amount of money, calculated as a percentage, that is added to the cost of a product or service when purchased by a consumer at a retail location. Consumers then pay the combined state and local tax rate every time they make a purchase.

9). "False"

The individual income tax (or personal income tax) is a tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year. The tax is generally imposed by the state in which the income is earned.