Question

Read the charts.





How are federal and state revenues different?

The federal government relies heavily on payroll taxes and states do not.
The federal government collects excise taxes and states do not.
State budgets rely heavily on individual income taxes and the federal budget does not.
State budgets require less from other taxes than the federal budget does.

Answer 1

The federal government relies heavily on payroll taxes and states do not.

Explanation: The federal revenue chart shows a large share from payroll (Social Security/Medicare) and individual income taxes, while state revenue charts show much smaller payroll-tax shares and rely more on sales and state income taxes.