Consider the concept of equity in taxation.What is the "benefit principle"?
A)the main principle on which all tax systems are based
B)the main principle on which the Canadian tax system is based
C)the principle that users of public goods are taxed in proportion to their use of them
D)the principle that users of public goods are taxed in proportion to their ability to pay
E)the main principle on which horizontal equity is based

Question

Quizplus · Accepted Answer

The benefit principle is the principle that users of public goods are taxed in proportion to their use of them. This means that those who benefit the most from public goods and services (e.g. highways, public schools, etc.) should pay a higher share of the cost of providing them through taxes. This principle is based on the idea of "user pays," where those who benefit from a service or good should bear the cost of it.

Consider the Concept of Equity in Taxation