Taxation according to the benefits-received principle is best illustrated by the _____ tax.

A) income
B) sales
C) gift
D) gasoline

Question

Taxation according to the benefits-received principle is best illustrated by the _____ tax.A) incomeB) salesC) giftD) gasoline

Danielle Goldberg · Accepted Answer

Final Answer : D, Explanation :  The gasoline tax is an example of the benefits-received principle because it is a tax on a specific product (gasoline) and those who use more of it (such as drivers who commute long distances) pay more in taxes. This is based on the idea that those who benefit more from a particular government service or good (such as roads) should pay more towards its funding.

Taxation according to the benefits-received principle is best illustrated by the _____ tax.

A) income
B) sales
C) gift
D) gasoline

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