The excise tax on gasoline is an example of a tax based on the ability-to-pay principle.

Name: The excise tax on gasoline is an example of a tax based on the ability-to-pay principle.
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The excise tax on gasoline is not based on the ability-to-pay principle, but rather on consumption. The more gasoline a person consumes, the more tax they pay, regardless of their ability to pay. The ability-to-pay principle would require those with higher levels of income or wealth to bear a greater tax burden.

The Excise Tax on Gasoline Is an Example of a Tax