Gasoline taxes that are typically used for highway construction and maintenance are consistent with which of the following principles of taxation?
A)the ability-to-pay principle
B)the horizontal-equity principle
C)the vertical-equity principle
D)the benefits-received principle

Question

Quizplus · Accepted Answer

Gasoline taxes are consistent with the benefits-received principle, which states that people who benefit from public goods and services should pay for them through taxes or fees. In this case, users of highways pay for their maintenance and construction through gasoline taxes.

Gasoline Taxes That Are Typically Used for Highway Construction and Maintenance