The benefits principle is often used to justify
A)the progressive income tax.
B)a flat income tax.
C)a regressive excise tax.
D)earmarking the proceeds from taxes for specific public services.

Question

Quizplus · Accepted Answer

The benefits principle suggests that the individuals who benefit from a particular public service should bear the cost of that service. Earmarking the proceeds from taxes for specific public services aligns with this principle. The progressive income tax is based on the ability to pay principle, and a flat income tax is not directly related to the benefits principle. A regressive excise tax is not in line with the benefits principle, as it would impose a greater burden on individuals who may not necessarily benefit from the public service being funded by the tax.

The Benefits Principle Is Often Used to Justify