If revenue from a gasoline tax is used to build and maintain public roads, the gasoline tax may be justified on the basis of
A)the benefits principle.
B)the ability-to-pay principle.
C)vertical equity.
D)horizontal equity.

Question

Quizplus · Accepted Answer

The benefits principle justifies taxes based on the benefits received by the taxpayer. In this case, those who pay the gasoline tax benefit from the use of public roads, aligning with the benefits principle.

If Revenue from a Gasoline Tax Is Used to Build