a.
To explain:
A tax on gasoline that finances maintenance of state roads.
Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.
According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.
b.
To explain:
An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.
c.
To explain:
Airline-flight landing fees that pay for air traffic control.
d.
To explain:
A reduction in the amount of income tax paid based on the number of dependent children in the household.
Want to see the full answer?
Check out a sample textbook solution- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education