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The use of fuel (gasoline and diesel) taxes to fund building and maintaining roads and highways is nost consistent with the principles of vertical and horizontal equity. True or false? Why?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 4CQQ

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The use of fuel (gasoline and diesel) taxes to fund building and maintaining roads and highways is
nost consistent with the principles of vertical and horizontal equity. True or false? Why?

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