The 2010 health care reform included a 10 percent tax on indoor tanning services.This tax would reflect ________ if indoor tanning leads to higher usage of government paid health care services from skin cancer.

Question

Quizplus · Accepted Answer

The tax on indoor tanning services would reflect the benefits principle of taxation, as it is a tax on a specific activity (indoor tanning) that is associated with increased risk of skin cancer and potentially higher healthcare costs. The benefits principle argues that individuals should support public goods and services (such as healthcare) based on the benefits they receive from them.

The 2010 Health Care Reform Included a 10 Percent Tax