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Compare And Contrast The Two Main Sources Of State Revenues

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The two main sources of state revenues are tax and non-tax revenues. These state or local governments, along with other governing authorities, “borrow” money by selling promises to pay. This is based on their ability to raise taxes, which in turn is based on the income of people who utilize goods and services, therefore are subject to paying the tax.Goods and services include things or places that make it possible for the people to earn money and pay taxes. The type of tax that is applied only to particular goods is called an excise tax.

Most states allow nonprofit groups like churches, private schools, and museums to be tax-exempt, which means to not pay taxes. This being said, the majority of state tax revenue comes from sales and income
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