When taxes are justified on the basis that taxpayers receive specific government services, the tax:
A) is considered horizontally equitable
B) burden is minimised
C) satisfies the benefits principle
D) is considered vertically equitable

Question

Quizplus · Accepted Answer

The benefits principle justifies taxes based on the idea that those who benefit from government services should pay for them. Therefore, taxes that are justified by specific government services are in line with the benefits principle.

When Taxes Are Justified on the Basis That Taxpayers Receive