Suppose that Amy and George have the same income.George has no children.Amy has two children, both of which attend a state-funded school.When Amy's children get sick their health care receives a government subsidy.George has private health insurance.According to the benefits principle:
A)Amy should pay more in taxes than George
B)George should pay more in taxes than Amy
C)Amy and George should pay the same amount in taxes
D)the education system should receive more government funding

Question

Quizplus · Accepted Answer

According to the benefits principle, individuals who benefit more from public services and goods should contribute more in taxes. In this case, Amy benefits more from the state-funded school and government health subsidies for her children, therefore she should pay more in taxes than George who does not benefit from these services.

Suppose That Amy and George Have the Same Income