On what basis can the benefits principle of taxation be used to argue that wealthy citizens should pay higher taxes than poorer ones
A)Police services are more frequently used in poor neighbourhoods.
B)The wealthy benefit more from services provided by government than the poor.
C)The poor are more active in political processes.
D)The poor places a greater dollar value on public goods than the rich.

Question

Quizplus · Accepted Answer

The benefits principle of taxation argues that individuals should be taxed in proportion to the benefits they receive from the government. Wealthy citizens tend to benefit more from government services such as national defense, infrastructure, and various business-related regulations. Therefore, they should contribute more to the cost of those services through taxes.

On What Basis Can the Benefits Principle of Taxation Be