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The Federal Gasoline Tax Is Assessed on a Per-Gallon Basis

Question 54

Multiple Choice

The federal gasoline tax is assessed on a per-gallon basis, and the proceeds are used for highway maintenance and improvements. This tax is consistent with the


A) ability-to-pay principle of taxation.
B) benefits-received principle of taxation.
C) single-tax theory of taxation.
D) pay-as-you-go theory of taxation.

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