When taxes are justified on the basis that taxpayers receive specific government services,what do we know
A)The tax is considered horizontally equitable.
B)The tax burden is minimized.
C)The tax satisfies the benefits principle.
D)The tax is considered vertically equitable.

Question

Quizplus · Accepted Answer

When taxes are justified on the basis that taxpayers receive specific government services, it is known as the benefits principle. This principle suggests that the tax burden should be proportional to the benefits received from government services. Therefore, option C - The tax satisfies the benefits principle - is the correct choice. Horizontal and vertical equity refer to the fairness of taxes, and minimizing the tax burden is not a direct consequence of this principle.

When Taxes Are Justified on the Basis That Taxpayers Receive