An example of the benefits-received principle of taxation is a(n):
A) gift tax.
B) cosmetics tax.
C) cigarette tax.
D) sewer tax.

Question

Quizplus · Accepted Answer

The sewer tax is an example of a benefits-received principle because it is based on the amount of usage of public infrastructure, in this case, the sewer system. Those who use the system more frequently will pay more in taxes, while those who use it less frequently will pay less, making it a fair system based on usage.

An Example of the Benefits-Received Principle of Taxation Is A(n)