Internal Revenue Service United States Department of the Treasury
Theme 4: What Is Taxed and WhyLesson 1: Federal/State/Local Taxes

 

Activity 3: State and Local Revenue and Expenditures

State and local revenue, like most federal revenue, comes from taxes. Study the charts below to learn where state and local governments get their money and how they spend it. Then read the questions that follow. Click on the letter of the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.

Pie charts indicating where state and local revenues come from and where state and local expenditures go.
  1. How much state and local revenue comes from corporate income tax?
  • A.
  • B.
  • C.
  • D.
  1. How much comes from individual income tax?
  • A.
  • B.
  • C.
  • D.
  1. How much comes from general sales tax and gross receipts?
  • A.
  • B.
  • C.
  • D.
  1. What percentage of state expenditures goes to elementary, secondary, and higher education?
  • A.
  • B.
  • C.
  • D.
  1. What percentage goes to support public assistance?
  • A.
  • B.
  • C.
  • D.

 

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