The government of Silverado raises revenue to operate the city's hospital, open to all residents, through a general income tax paid by its residents.This method of raising revenue is consistent with the benefits-received principle, even if some residents use the hospital more than others.

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The benefits-received principle suggests that individuals who benefit more from a government service or program should pay more for it. However, a general income tax does not consider the extent to which individuals benefit from the hospital.

The Government of Silverado Raises Revenue to Operate the City's