Which of the following is an example of a tax that is designed according to the "benefit principle"?
A)a metered water tax
B)school tax (based on property value)
C)a provincial sales tax
D)value-added tax
E)federal income tax

Question

Quizplus · Accepted Answer

A metered water tax is an example of a tax designed according to the "benefit principle" because households are charged for the amount of water they use, so those who use more water pay more tax. This tax is based on the idea that those who use more of a service should pay more for it.

Which of the Following Is an Example of a Tax