Question

Which of the following statements about taxes is FALSE?
A) Taxes are collected at the local, state, and federal level
B) Some states don't collect income tax
C) Some states don't collect sales tax
D) Taxes at the local, state and federal level are all equal

Answer 1

Obviously it is the last choice, letter D. Taxes at the local, state and federal level are all equal. There are some types of incomes that are not taxed and are taxed, for instance, passive and earned income are taxed while incomes like portfolio income are not taxed.