The idea that individuals should be taxed in proportion to the marginal benefits that they receive from public goods is called
A)the ability-to-pay principle.
B)the horizontal-equity principle.
C)the vertical-equity principle.
D)the benefits-received principle.

Question

Quizplus · Accepted Answer

The benefits-received principle suggests that individuals should be taxed in proportion to the marginal benefits they receive from public goods. This means that those who use public goods more heavily should pay proportionally more taxes to support those goods.

The Idea That Individuals Should Be Taxed in Proportion to the Marginal