20
QuizMultiple Choice

Taxes

Question 20 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Which describes a type of tax that funds city programs?

Answer
A
progressive tax
B
federal income tax
C
local income tax
D
medicare tax

Explanation

A local income tax is collected by a city or other local government and can help pay for city programs and services. A federal income tax goes to the national government, while Medicare tax supports the federal Medicare program. Therefore, the correct choice is local income tax.

AI-written and checked against the verified answer.

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