Using Fuel Taxes to Pay for Maintaining Public Highways Is

question 119

Multiple Choice

Using fuel taxes to pay for maintaining public highways is an example of

• A) the benefits principle of fair taxation.
• B) horizontal equity approach to taxation.
• C) vertical equity approach to taxation.
• D) the ability-to-pay principle of taxation.
• E) the excess burden from taxes.

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Definitions:

Employee Benefits Package

A collection of non-wage compensations provided to employees in addition to their normal wages or salaries.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.

Umbrella Liability

A package of several kinds of insurance.

Liability Insurance

A type of insurance that provides protection against claims resulting from injuries and damage to people or property.