What are the sources of revenue for local governments? Q.What are the sources of revenue for local governments? A.Local governments collected more than $1.5 trillion of general revenue in 2014. Revenue from local property, sales, and other taxes totaled $624 billion, about 41 percent of general revenue (figure 1). Read more about What are the sources of revenue for local governments?
How do state earned income tax credits work? Q.How do state earned income tax credits work? A.States typically structure their earned income tax credit (EITC) as a percentage of the federal EITC. In 2016, state EITCs varied from 3.5 to 40 percent of the federal credit. Some state EITCs are not refundable, which make them much less valuable to very low-income families who rarely owe income tax. Read more about How do state earned income tax credits work?
How do state and local individual income taxes work? Q.How do state and local individual income taxes work? A.Forty-one states and the District of Columbia levy broad-based taxes on individual income. New Hampshire and Tennessee tax only individual income from dividends and interest. Seven states do not tax individual income of any kind. Local governments in 12 states levy their own income tax on top of state taxes. Read more about How do state and local individual income taxes work?
