Which of the Following Taxes Best Illustrate the Ability-To-Pay Principle

question 12

Multiple Choice

Which of the following taxes best illustrate the ability-to-pay principle of tax fairness?

• A) Roads and highways are built and maintained through a tax on gasoline.
• B) The local library is funded through a flat $10 tax levied on all homeowners.
• C) A sales tax on food pays for local police and fire protection.
• D) The WIC program provides food to low income mothers and is funded through the progressive federal income tax.
• E) State parks are maintained through the state lottery.

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Definitions:

Control Chart

A graph used to study how a process changes over time, displaying data points in time order and often including control limits to detect anomalies.

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly of the mean.

Sample Standard Deviation

A measure of the amount of variation or dispersion of a set of sample values, indicating how much the values differ from the mean of the sample.

Sampling Distribution

A statistical distribution that emerges from conducting numerous samples within a particular population base.