What Is The Benefit Principle For Selecting A Method Of Taxation?

The benefit principle originates from the theory of taxation from public finance. It is a concept that bases the value of taxes to pay for public resources and expenditures by a political decision of the people’s willingness to pay in terms of benefits received. It is associates with the function of how prices are decided upon for private goods. The benefit principle focus on a market-oriented perspective. It is made to determine the most optimal costs and benefit and balance it with economic standards. It protects the prices of public goods. Regressive taxes People who have low-income are forced to pay a higher amount for taxes as compared to people who have higher incomes. The government basically assesses tax as a percentage of the total asset value that a taxpayer has. It has no correlation with an individual’s amount of income or social status. Real estate property ...