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Tax Examples

*Gasoline Tax
The gasoline excise tax is paid on each gallon of gas bought to support highway construction and maintenance. People who buy more gas pay more tax, but presumably they use the roads more and receive more benefits than those who drive less.

The tax is fair according to benefits received, but not according to ability to pay; low-income drivers pay the same tax as those with high incomes.

*Property Tax
A property tax, levied on the value of a house or other property, usually supports schools. Owners of valuable property pay more, even if they have no children in schools and regardless of their incomes.

The tax is fair on the basis of ability to pay--wealth, but not on the basis of ability to pay--income, and only partly on the basis of benefits received (in general, all benefit from good schools).

The citizens of Hamalot Island had a lot more to consider than just assessing fairness based on income.

So this is what I reported to the queen

Outer Magnolia - Dead Man's Gulch - Hamalot City - Detective's Challenge - Solving the Case

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Note: For more information and resources on this subject, go to the U.S. Tax Center.
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