Explain the idea behind the benefits-received principle of taxation and provide an example
What will be an ideal response?
It is a theory of fairness which holds that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits that they receive from public expenditures. The gasoline tax, paid by motorists, goes to the Federal Highway Trust Fund to build and maintain federal highways. The beneficiaries of public highways are thus taxed in rough proportion to their use of those highways.
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Legal restrictions on competition, such as the grant of patent privileges to inventors,
A) destroy property rights. B) expand property rights. C) both destroy and expand property rights. D) neither destroy nor expand property rights because patents are granted by the U.S. Constitution.
Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that
A) the demand for personal trainers has increased. B) personal trainers are deliberately charging high prices because they provide services for wealthy clients. C) the number of personal trainers has increased. D) the law of demand has been violated.