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Which of the Following Distinctions Separates Government User Charges from Taxes

Question 1

Multiple Choice

Which of the following distinctions separates government user charges from taxes?


A) Taxes are spent for general government costs and are not earmarked; user charges are earmarked
B) The federal government collects taxes but not user charges.
C) Taxes are collected by coercion; user charges are proceeds from voluntary exchange.
D) None of the above.

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