What is the primary source of income for state governments as indicated in revenue sources?

The primary source of income for state governments is income taxes. This revenue is typically derived from individual income taxes levied on the earnings of residents and sometimes on corporations. States have the authority to levy taxes on personal and corporate income, making this a significant source of funding for state budgets, supporting a wide range of public services such as education, healthcare, and infrastructure.

Income taxes are often seen as a progressive source of revenue, as they can be structured in a way that higher earners pay a higher percentage than lower earners. This aligns with many states' objectives of equity in taxation, ensuring that those who can afford to contribute more do so.

General sales taxes, selective sales taxes, and property taxes also contribute to state revenue but typically do not match the significance or total revenue generated by income taxes on a state level. General sales taxes are based on consumer spending but can fluctuate with economic conditions. Selective sales taxes are applied to specific goods, such as tobacco or alcohol, and property taxes primarily fund local governments rather than state governments. Thus, income taxes stand out as the most crucial and consistent form of revenue for state governments.