Using Fuel Taxes to Pay for Maintaining Public Highways Is

question 119

Multiple Choice

Using fuel taxes to pay for maintaining public highways is an example of

• A) the benefits principle of fair taxation.
• B) horizontal equity approach to taxation.
• C) vertical equity approach to taxation.
• D) the ability-to-pay principle of taxation.
• E) the excess burden from taxes.

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Definitions:

Tax Rate

The proportion of income that an individual or corporation must pay as taxes.

Net Advantage to Leasing

The total financial benefit that a business might achieve from leasing assets rather than purchasing them, considering all costs and savings.

Purchase Price

This is the amount of money paid to buy a good, service, or financial asset.

Straight-Line Depreciation

A strategy for spreading out the expenditure of a tangible asset over the duration of its usefulness in uniform annual amounts.