tax
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Describe the types of taxes levied by local, state, & federal governments.
LOCAL = real property tax and personal property tax (household and business tangibles, & intangibles.) These two items are also known as "ad valorem taxes."
STATE = sales tax, excise tax, personal & corporate income tax
FEDERAL = income tax, also employment & unemployment taxes, transfer taxes (exchange in wealth.)
Explain why different taxing jurisdictions often compete for revenues from the same taxpayer.
Governments frequently compete for businesses to establish themselves in their own jurisdiction. Governments understand that their taxing jurisdictions frequently overlap. Also, business managers are searching for locations with comparative advantages on taxes. On one hand, a government that fails to protect its jurisdictional turf may lose jurisdiction to more assertive taxing authorities. On the other hand, jurisdictions that are too overly assertive may drive businesses out...