Problem
Consider a state debating how to finance emergency road and bridge improvements. Among the possibilities: increased fees on drivers' licenses, a personal property tax on motor vehicles, a tax on automobile parts (including tires), and higher taxes on cigarettes and liquor. Which of these taxes are benefit taxes, which are corrective taxes, which are both? Which of these taxes is least distortionary?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.