on the other hand the value of service implies that

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Unformatted text preview: value of service implies that the every individual should pay in the form of taxes according to the worth of the services he/she has received from the government. received A close examination of the two interpretations shows close that they are not different because the purpose of this approach is to pay the cost of government services. approach The basic idea of benefit approach is that tax is like a The price and it should be designed to maximize the satisfaction which the consumers derive from his/her payment for public services. payment 28 Benefit Principle: Benefit Assessment of Benefit Principle: The principle justifies the : imposition of tax. It combines The both the income and expenditure side of the budget., thus determines the simultaneously the public service as well as tax shares. This approach is applicable to those cases where the benefit received can be measured eg. petrol tax for the user of the road, local property tax for the maintenance of police. property This approach has...
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This note was uploaded on 02/11/2014 for the course MANA 2028 taught by Professor Sisterennis during the Winter '12 term at Marquette.

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