A federal excise tax on tires for cars and trucks would be an example of the

A) benefits-received principle of taxation.
B) ability-to-pay principle of taxation.
C) proportional tax.
D) progressive tax.

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as tobacco and alcohol.

Benefits-received Principle

A taxation theory suggesting that individuals should pay taxes in proportion to the benefits they receive from government services.

Taxation

A process by which governments finance their expenditure by imposing charges on citizens and corporate entities.