The federal gasoline tax is assessed on a per-gallon basis and the proceeds are used for highway maintenance and improvements. This tax is consistent with the:
A. single-tax theory of taxation.
B. pay-as-you-go ("Paygo") theory of taxation.
C. benefits-received principle of taxation.
D. ability-to-pay principle of taxation.
Answer: C
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a. True b. False Indicate whether the statement is true or false
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