Taxation according to the benefits-received principle is best illustrated by the:

Question

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The gasoline tax is an example of taxation according to the benefits-received principle because it is a tax levied on the consumption of gasoline which directly benefits the user in the form of fuel for their vehicles. As such, those who use more gasoline and those who use heavier vehicles that require more fuel pay more in gasoline taxes, in proportion to the benefits they receive from the use of the fuel. The other options listed do not necessarily have a direct correlation to benefits received by an individual, as income tax is based on total income earned, sales tax is based on the purchase of goods and services, and gift tax is based on the transfer of wealth or assets.

Taxation According to the Benefits-Received Principle Is Best Illustrated by The