Which of the Following Is Not Based on the Benefits-Received

question 137

Multiple Choice

Which of the following is not based on the benefits-received principle of taxation?

• A)charging a fee for use of public golf courses
• B)differences between residential and out-of-state college tuition
• C)the excise tax on gasoline
• D)toll booths on a highway
• E)charging a fee per bag to haul away garbage

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Definitions:

Private Letter Rulings

Written decisions by the IRS in response to taxpayer requests for clarification on specific tax situations, binding only for the requesting taxpayer.

Temporary Regulations

Rules issued by government agencies for a limited period to address immediate issues or situations.

Revenue Ruling

An official interpretation by the IRS on how the law is applied to a specific set of facts.

Tax Rate Structure

Describes how tax rates progress from low to high depending on income levels, assets, or transactions, varying from progressive, regressive, or proportional.