Which of the following taxes best illustrates the ability-to-pay principle of tax fairness?
A) Roads and highways are built and maintained through a tax on petrol.
B) Your local library is funded through a flat $10 tax levied on all homeowners.
C) National parks and reserves are maintained through a state lottery.
D) The Aged Pension supports the income of old people and is funded through the progressive federal income tax.
E) A sales tax on food pays for your police force and fire brigade.
Correct Answer:
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