When a Tax Is Justified on the Basis That Taxpayers

question 3

Multiple Choice

When a tax is justified on the basis that taxpayers receive specific government services,the tax

• A)is considered horizontally equitable.
• B)burden is minimized.
• C)satisfies the benefits principle.
• D)is considered vertically equitable.

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Definitions:

Drawer

In financial transactions, the drawer is the person who writes or issues a cheque or draft, instructing their bank to pay a specified sum of money to the payee or bearer.

Payee

The individual or entity to whom a check, draft, or note is made payable.

Certified Check

is a check for which the issuing bank guarantees availability of funds by verifying the account's balance and then setting aside the check amount.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account, and signed by a cashier.