What is a common characteristic of a healthy tax base?

A healthy tax base is characterized by high taxable assets and income. This is because a robust tax base indicates that a locality or state has a substantial amount of resources available from which to collect taxes. Higher taxable assets mean that property values are adequate, allowing for significant property tax revenues, while high taxable income reflects the economic productivity of the community and its residents.

When a jurisdiction has a high tax base, it is better positioned to fund essential services such as education, public safety, and infrastructure. This leads to improved overall quality of life and economic stability in the area. The presence of high taxable assets and income is a sign of a thriving economy, suggesting that residents and businesses are prospering, which ultimately contributes to the sustainable financial health of the community.

The other options do not support a healthy tax base; for instance, low property values would lead to lower property tax revenues, low community engagement in budgeting processes could result in misallocation of resources, and high state liability would indicate greater financial risk rather than strength.