Question :
11) Using fuel taxes to pay for maintaining public highways : 1241622
11) 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.
12) The 2010 health care reform included a 10 percent tax on indoor tanning services. This tax would reflect ________ if indoor tanning leads to higher usage of government paid health care services from skin cancer.
A) the benefits principle of taxation
B) the ability-to-pay principle of taxation
C) horizontal equity
D) vertical equity
E) a regressive tax
13) The idea that taxpayers with the same ability to pay a tax should pay the same taxes is called
A) progressive taxes.
B) regressive taxes.
C) horizontal equity.
D) vertical equity.
E) fair-incidence principle.
14) The ability-to-pay principle of tax fairness is equivalent to which of the following?
A) collecting taxes from those who benefit the most from provision of public services
B) collecting more taxes from people who can more easily bear the burden
C) a regressive income tax structure
D) a proportional income tax structure
E) concern about only horizontal equity and no concern about vertical equity
15) Which of the following taxes best illustrates the ability to pay principle?
A) sales tax
B) state property tax
C) federal income tax
D) cigarette tax
E) marriage tax
16) Which of the following taxes best illustrate the ability-to-pay principle of tax fairness?
A) Roads and highways are built and maintained through a tax on gasoline.
B) The local library is funded through a flat $10 tax levied on all homeowners.
C) A sales tax on food pays for local police and fire protection.
D) The WIC program provides food to low income mothers and is funded through the progressive federal income tax.
E) State parks are maintained through the state lottery.
17) Which of the following taxes best illustrate the ability-to-pay principle of tax fairness?
A) Tuition at public universities is lower for in-state residents than for out-of-state residents.
B) The library is funded through a flat $10 tax levied on all homeowners.
C) A property tax that is proportional to the value of a home is used to fund K-12 education.
D) Free cholesterol check clinics are funded through a $0.20 tax on all prescriptions.
E) A sales tax on food pays for local police and fire protection.
18) The 2010 health care reform that expanded public health care coverage for low income individuals by increasing taxes on high income earners. Taking more tax revenue from high income earners reflects
A) the benefits principle because high income earners can more easily bear the burden of taxes.
B) the ability-to-pay principle because high income earners can more easily bear the burden of taxes.
C) the ability-to-pay principle because high income earners use more public health care services.
D) the benefits principle because high income earners use more public health care services.
E) a regressive tax system since high income earners will pay a greater dollar amount in taxes.
19) When it comes to taxes, horizontal equity means that
A) people with lower incomes bear a smaller tax burden.
B) people with the same incomes pay the same amount of taxes.
C) progressive taxes must be imposed.
D) regressive taxes must be imposed.
E) only proportional taxes are fair.
20) The assertion that people with the same ability to pay taxes should pay the same amount in taxes best represents the idea of
A) horizontal equity.
B) vertical equity.
C) the benefits principle of tax fairness.
D) fairness principle of taxation.
E) benefits paid principle of taxation.
