The benefits-received principle of taxation is used to support corporate and personal income taxes.

Question

Quizplus · Accepted Answer

The benefits-received principle of taxation suggests that people should pay taxes in proportion to the benefits they receive from government services, which is more directly applied to specific fees and charges (like tolls or park fees) rather than broad-based taxes like corporate and personal income taxes. These broader taxes are more aligned with the ability-to-pay principle.

The Benefits-Received Principle of Taxation Is Used to Support Corporate