the excise tax on gasoline is an example of a tax based on a benefit received rather than on the ability to pay.
a. yes b. no
This is obviously Yes since
in the book it says >>
For many governments the primary source of revenue is taxes, which in turn can take many forms, including income taxes, sales taxes, property taxes on houses, ad valorem tax taxes for automobiles, and excise tax (a kind of sales tax on things like cigarettes, alcohol, and gasoline - sometimes referred to as "sin taxes")
Yes, the excise tax on gasoline is an example of a tax based on a benefit received rather than on the ability to pay. This type of tax is often referred to as a "sin tax" because it is imposed on goods that are considered harmful or have negative impacts on society. In the case of gasoline, the excise tax is levied to help fund the maintenance and infrastructure of roads and highways, benefiting those who use them.
You are correct! The excise tax on gasoline is indeed an example of a tax based on a benefit received rather than on the ability to pay. To understand why, let's break it down:
1. Benefit received: The excise tax on gasoline is specifically imposed on the consumption of gasoline. The idea behind this tax is that individuals who use gasoline benefit from the road infrastructure and transportation services that are funded by tax revenue. Therefore, by taxing gasoline, governments can generate revenue from those who directly benefit from its consumption.
2. Ability to pay: Unlike income taxes or property taxes, the excise tax on gasoline is not directly linked to an individual's ability to pay. It is not based on one's income or property value but rather on the quantity of gasoline purchased. This means that regardless of income level or wealth, anyone who purchases gasoline will pay the same amount of tax per gallon or liter.
So, the excise tax on gasoline is an example of a benefit-based tax because it is related to the consumption of a specific product (gasoline) that provides a benefit (road infrastructure and transportation services), rather than being based on one's ability to pay. Therefore, the answer to your question is "a. yes."