Assess each of the following taxes in terms of the benefits principle versus the ability-to-pay principle. What, if any, actions are distorted by the tax? Assume for simplicity in each case that the purchaser of the good bears 100% of the burden of the tax.

a. A federal tax of $500 for each new car purchased that finances highway safety programs

b. A local tax of 20% on hotel rooms that finances local government expenditures

c. A local tax of 1% on the assessed value of homes that finances local schools

d. A 1% sales tax on food that pays for government food safety regulation and inspection programs