Asked by Tehilla Peyamipour on Jun 25, 2024
Verified
The federal gasoline tax is assessed on a per-gallon basis, and the proceeds are used for highway maintenance and improvements. This tax is consistent with the
A) ability-to-pay principle of taxation.
B) benefits-received principle of taxation.
C) single-tax theory of taxation.
D) pay-as-you-go theory of taxation.
Federal Gasoline Tax
A tax imposed by the federal government on the sale of gasoline.
Highway Maintenance
The process of keeping roads in safe and workable condition, including repairs, repaving, and cleaning activities.
- Gain insight into the essential concepts and types of tax structures, including regressive, progressive, proportional, and benefits-received taxation.
- Ascertain the goals and effects of specific tax types, such as excise taxes and sales taxes.
Verified Answer
TJ
Taylor JabczenskiJul 02, 2024
Final Answer :
B
Explanation :
The federal gasoline tax aligns with the benefits-received principle of taxation because those who pay the tax (drivers who purchase gasoline) directly benefit from the use of the roads and highways that are maintained and improved with the tax proceeds.
Learning Objectives
- Gain insight into the essential concepts and types of tax structures, including regressive, progressive, proportional, and benefits-received taxation.
- Ascertain the goals and effects of specific tax types, such as excise taxes and sales taxes.
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