Why would fiscal disparities among states be considered a disadvantage of federalism?
a. Poorer states benefit more from federal and state programs while paying less in taxes for the services, thus creating inequities for wealthier citizens.
b. The cost of living differs in each state.
c. The tax rate differs in each state.
d. States with lower average incomes have less taxable resources, leaving wide fiscal inequalities among states.
e. Fiscal disparities have no bearing on federalism since the government has the power to tax.
ANS: D
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