(I) Sales Taxes, Income Taxes, Property Taxes, and Grants from Higher

Multiple Choice

(I) Sales taxes, income taxes, property taxes, and grants from higher levels of government are the major sources of state and local revenue in the United States. (II) Including both the excess burden and administration, enforcement, and compliance costs of taxes in the United States, $1 in taxes to the government imposes a cost of somewhere between $1.20 and $1.30 on the economy.

A) Both I and II are true.
B) I is true; II is false.
C) I is false; II is true.
D) Both I and II are false.