Which of the following statements about how taxes are collected at different government levels is false?

Introduction / Context:
Modern tax systems are layered, with revenue often collected at several levels of government such as local, state and national authorities. General knowledge questions about taxation test whether you understand this multi level structure and are aware that different regions can have different tax policies. The question here is asking you to identify the false or incorrect statement among four descriptions of how taxes are collected, so you must carefully compare each statement with basic facts about tax systems in federal countries like the United States.

Given Data / Assumptions:

• The context is a federal system with local, state and national governments.
• Some states choose not to impose certain taxes, such as a state income tax or a general sales tax.
• Local bodies may levy property taxes or other local charges.
• There is no rule that amounts collected at each level must be equal.

Concept / Approach:
The correct conceptual approach is to recall that tax structures vary widely across states. In some federations, a few states do not have a state income tax, while others do. Similarly, certain states choose not to impose a state wide general sales tax. However, local governments and the national government still collect taxes. The false statement in the question will usually be an exaggerated or absolute claim that does not hold in reality, such as saying that tax collections must be equal at all levels. Recognising such unrealistic uniformity claims is a useful exam technique for questions that ask for the incorrect option.

Step-by-Step Solution:
Step 1: Examine option A, which states that some states do not collect a state income tax. This is true in several real world cases.Step 2: Examine option C, which claims that taxes are collected at local, state and federal levels. This is also true in federal tax systems.Step 3: Examine option D, which states that some states do not collect a general state sales tax. This is again true in certain states.Step 4: Examine option B, which states that taxes at all three levels are exactly equal in amount, and identify this as false because tax revenues differ widely by level and region.

Verification / Alternative check:
To verify, you can consider a practical example from a federal country. The central government typically collects large revenues from income tax, customs and corporate tax. States collect less in comparison, and local bodies usually collect much smaller amounts from property tax and service charges. There is no requirement that these amounts match exactly. The very idea that local, state and federal tax collections could be exactly equal is unrealistic. This reasoning confirms that the statement about equality of collections is false, while the other statements simply describe variations in tax policy across states, which are known to occur.

Why Other Options Are Wrong:
Option A is a true statement because some states genuinely choose not to impose a state level personal income tax. Option C is also true because modern tax systems commonly have collection at local, state and federal levels. Option D is true as well, since some states do not levy a general sales tax, relying instead on other revenue sources. Only option B makes the obviously incorrect claim that the amounts collected at all three levels are exactly equal, which does not happen in practice and therefore is the false statement requested by the question.

Common Pitfalls:
One common mistake is not reading the word false or incorrect carefully and instead choosing a statement that looks different but is actually true. Another pitfall is assuming standardisation where none exists, such as thinking that the same tax must exist everywhere or that all levels must collect identical amounts. In the examination hall, always underline or mentally highlight whether you are being asked for a true statement or a false one, and then systematically test each option against your basic knowledge of how governments raise revenue.

Final Answer:
The false statement is that taxes collected at the local, state, and federal levels are all exactly equal in amount.