Question

Among the following, which one best represents the benefits-received principle of taxation?

Answer 1

The best example of the benefits-received principle of taxation is the exercise taxes on gasoline.

Answer 2

The best example of the benefits-received principle of taxation is the exercise taxes on gasoline. The concept of this so-called benefits-received principle is that those who benefit most from the government in supplied goods and services should pay the taxes. Letter b is the good representation of that, for the people who most benefit from the good roads, they need to pay the gasoline taxes. It helps in repairing and constructing the highway.