Consider a public good such as fire protection services.Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property.In this case
A)the ability-to-pay principle may support the rich paying more taxes than the poor, but not the benefits-received principle.
B)the benefits-received principle may support the rich paying more taxes than the poor, but not the ability-to-pay principle.
C)both the benefits-received and the ability-to-pay principles may support the rich paying more taxes than the poor.
D)neither the benefits-received nor the ability-to-pay principles may support the rich paying more taxes than the poor.

Question

Quizplus · Accepted Answer

Both the ability-to-pay and the benefits-received principles may support the rich paying more taxes than the poor for fire protection services. The ability-to-pay principle suggests that those who have a greater ability to pay should pay more taxes. Since the rich have more property and stand to lose more from fires, they may have a greater ability to pay for fire protection services. The benefits-received principle suggests that those who benefit more from a public good should pay more taxes to support it. Since the rich stand to benefit more from fire protection services because they have more property to protect, they may be asked to pay more in taxes.

Consider a Public Good Such as Fire Protection Services