Question 22
Public FinanceIn taxation, the benefit principle requires that
- A.everybody must draw benefits from taxation
- B.all those who earn more income must pay more taxes
- C.only those who derive benefit from services provided from public revenue should be taxed
- D.taxes paid by businesses should be shifted to those consumers benefiting from such consumer commodities
- E.everybody pays an equal amount.
Show the answer and explanation
Answer: C (only those who derive benefit from services provided from public revenue should be taxed)
Explanation
The benefit principle says people should pay tax according to the benefit they get from public services.