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, primarily used to fund transportation projects.

Taxation Principle

Guidelines and theories in economics that outline how to structure taxes to achieve certain economic objectives, such as fairness, efficiency, and simplicity.

Highway Maintenance

The process of keeping roads in safe, usable condition, including repairs, cleaning, and updating road signs and markings.