A major political problem with collecting taxes to finance government spending is that:
A)taxes make taxpayers worse off since government spending benefits no one
B)taxes make taxpayers worse off since government spending benefits only those on welfare
C)the people who pay the taxes are often not the same people who benefit from the government spending of tax funds
D)taxes reduce economic welfare more than the expenditure of tax funds benefits society

Question

Quizplus · Accepted Answer

This is known as the "benefit principle" problem, where those who pay taxes may not directly benefit from the government spending of tax funds. This can lead to resentment and resistance to paying taxes, which can make it difficult for governments to collect the revenue needed for their programs and services.

A Major Political Problem with Collecting Taxes to Finance Government