Why are revenue shortfalls such a problem for the Texas tax system?
a. The state relies too much on sales taxes.
b. When the economy is weak, people stop buying and thus stop paying sales taxes.
c. The system relies heavily on spending by low- and middle-class individuals.
d. All of these are reasons for revenue shortfalls.
e. None of these is a reason for revenue shortfalls.
Question 2
The two most significant problems with the tax system in Texas are _____.
a. fairness and the lack of elasticity
b. its focus on personal and corporate income taxes
c. its overreliance on state property taxes and borrowing
d. its overtaxing of businesses both large and small
e. all of these
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