Science Fair Project Encyclopedia
Hypothecation
Hypothecation (literally: hypothetical dedication) is a treatment and possible justification for government taxation or expenditure. For instance in the United States the Gasoline Tax is dedicated to the funding of transportation infrastructure.
In reality the system is not so closed. If transportation costs were to exceed gasoline tax revenue then services would not be cut. Likewise, if revenues were to exceed costs then the balance would not go unspent.
10-26-2009 08:16:03
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The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details