Al Believes That SUVs Have Negative Social and Environmental Effects

question 45

Multiple Choice

Al believes that SUVs have negative social and environmental effects because of their increased carbon monoxide emissions. He proposes eliminating sales taxes on smaller automobiles in favor of higher sales taxes levied on SUVs. Al performs some calculations and comes to the conclusion that based on the current number of SUVs owned in the U.S. exactly the same amount of total sales tax will be collected under his reformed system. Which of the following concepts explains why Al's idea may not work?

• A) The ability to pay principle
• B) Horizontal equity
• C) Substitution effect
• D) Vertical equity
• E) None of these

---

Definitions:

Imaginative

Possessing the ability or tendency to think creatively and inventively, often leading to new ideas or concepts.

Sexual Orientation

An inherent or immutable enduring emotional, romantic or sexual attraction to other people.

Title VII

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Ablebodiedness

The condition of being physically capable without disability, often used in discussing inclusivity or the lack thereof.