Which of the Following Is a Sanction Imposed on States

question 47

Multiple Choice

Which of the following is a sanction imposed on states that don't implement approved plans for the reduction in air pollution?

• A) increase in tax for personal property
• B) reduction in public school funding
• C) loss of federal highway funds
• D) implementation of monthly fines based on pollution levels

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Definitions:

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay, relative to their income or profits.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public services, government obligations, and goods.

Benefits Principle

A concept that suggests taxes should be levied based on the benefits received by taxpayers, ensuring that those who benefit more from public services pay more taxes.

Ability-To-Pay Principle

The ability-to-pay principle is a tax theory suggesting that taxes should be levied based on the taxpayer’s capacity to pay, implying that wealthier individuals should pay more in taxes.