To Levy a Tax Based on the Benefits Principle to Pay

question 192

Multiple Choice

To levy a tax based on the benefits principle to pay for a bridge,the government

• A) would impose an income tax instead of a social security tax on workers.
• B) would impose a social security tax on workers instead of an income tax.
• C) needs to know each person's benefit from the bridge.
• D) needs to be able to calculate the deadweight loss of a tax.
• E) cannot impose the tax on anyone who uses the bridge.

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Definitions:

Ronald Reagan

The 40th President of the United States, serving from 1981 to 1989, known for his conservative policies and significant role in ending the Cold War.

George H.W. Bush

The 41st President of the United States, serving from 1989 to 1993, known for his foreign policy achievements and domestic economic challenges.

Federal Agencies

Government bodies established by Congress to implement and administer specific legislation and regulation at the national level.

Devolution

The transfer or delegation of power to a lower level, especially by central government to local or regional administration.