When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax, the tax
A)is considered horizontally equitable.
B)burden is minimized.
C)satisfies the benefits principle.
D)is considered vertically equitable.

Question

Quizplus · Accepted Answer

The benefits principle states that those who benefit from specific government services should bear the cost of those services through taxation. Therefore, a tax that is justified on the basis of the benefits principle satisfies this principle.

When a Tax Is Justified on the Basis That the Taxpayers