Suppose the government levies a "fat tax" on naturally-sweetened carbonated beverages to try to reduce the number of overweight children. If the tax revenues pay for the health problems of overweight children, the tax would satisfy the

Question

Quizplus · Accepted Answer

The "benefits principle" states that individuals who benefit more from government services should pay more taxes to support those services. In this case, the tax revenue collected from the "fat tax" is used to pay for the health problems of overweight children - those who consume more sugary drinks and are therefore more likely to suffer from health problems. Therefore, the "benefits principle" is satisfied.

Suppose the Government Levies a "Fat Tax" on Naturally-Sweetened Carbonated