When a tax is justified on the basis that taxpayers receive specific government services,the tax
A)is considered horizontally equitable.
B)burden is minimized.
C)satisfies the benefits principle.
D)is considered vertically equitable.

Question

Quizplus · Accepted Answer

The tax that is justified on the basis that taxpayers receive specific government services is considered to satisfy the benefits principle. According to the benefits principle, taxpayers who benefit more from the government services should pay more to finance them. Therefore, the tax burden is allocated according to the benefits received, which is considered vertically equitable (fair).

When a Tax Is Justified on the Basis That Taxpayers