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5. Automobiles are taxed in many different ways. Revenues from automobile taxes are typically used for road building and maintenance. For each of the following
5. Automobiles are taxed in many different ways. Revenues from automobile taxes are typically used for road building and maintenance. For each of the following automobile taxes, explain why it's most clearly an example of the benefit principle of taxation or an example of the ability to pay principle of taxation. If the answer is more ambiguous than that, explain why.
C. An annual registration fee based on the number of miles the car has been driven in the past year (4 points)
D. An annual licensing fee of $50 per automobile (4 points)
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