Question: Question #3 using Itep, Who Payshttps://itep.sfo2.digitaloceanspaces.com/whopays-ITEP-2018.pdf Whydo low-income people in the states of Washington and Texas pay agreater share of their incomes in state taxes

Question #3 using Itep, Who Payshttps://itep.sfo2.digitaloceanspaces.com/whopays-ITEP-2018.pdf Whydo low-income people in the states of Washington and Texas pay agreater share of their incomes in state taxes than the low-incomepeople of the states of Oregon and New York?

A-Because Texas and Washington do not have an Earned Income TaxCredit that refunds income taxes to low-income workers.

B-Because Texas and Washington rely very, very heavily onproperty taxes.

C-Because Texas and Washington both rely heavily on sales andexcise taxes, both of which are inherently regressive, and neitherhave an income tax.

D-Because Texas and Washington are fast-growing states thatincentivize family formation, and indirectly support consumptionthrough massive nutrition-assistance programs.

Step by Step Solution

3.47 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Ans Option C Because Texas and Washington both rely heavily on sales and excise tax... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!