Question

Categorize each of the following funding schemes as examples of the benefits principle or the ability-to-pay principle. scheme benefits principle ability-to-pay principle college students pay tuition to attend public college. local property taxes support elementary and secondary schools. a highway trust fund collects a federal fuel tax to pay for road construction and other surface transportation projects.

Answer 1

The funding schemes can be categorized as the benefits principle and the ability-to-pay principle.

Step-by-step explanation:

The funding schemes can be categorized as follows:

1. Benefits principle: College students paying tuition to attend public college.
2. Ability-to-pay principle: Local property taxes supporting elementary and secondary schools.
3. Benefits principle: A highway trust fund collecting a federal fuel tax to pay for road construction and other surface transportation projects.

Answer 2

College students pay tuition to attend public college -Ability-to-pay principle.

Local property taxes support elementary and secondary schools - Benefits principle.

A highway trust fund collects a federal fuel tax to pay for road construction and other surface transportation projects - Benefits principle.

Benefits principle: This principle suggests that individuals should pay taxes in proportion to the benefits they receive from government services and programs.

Ability-to-pay principle: This principle advocates that individuals should contribute to taxes based on their financial capacity or ability to pay regardless of the direct benefits they receive from government services.