Which of the Following Taxes Is Most Clearly Based on the Benefits-Received

question 75

Multiple Choice

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

• A)corporate income tax
• B)gasoline tax
• C)personal income tax
• D)payroll tax
• E)value added tax

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Definitions:

Precise Recommendations

Detailed and specific suggestions or guidelines intended to achieve an objective or solve a problem.

Businesses

Organizations engaged in the provision of goods or services with the primary aim of making a profit.

Tradable Pollution

A system where companies or countries can buy or sell allowances to emit a certain amount of pollutants, with the aim of reducing overall emissions.

Cap-And-Trade

An environmental policy tool that limits greenhouse gas emissions by allocating emission allowances and permitting the trading of these allowances among emitters.