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Unformatted text preview: value of service implies that
every individual should pay in the form of taxes
according to the worth of the services he/she has
received from the government.
A close examination of the two interpretations shows
that they are not different because the purpose of this
approach is to pay the cost of government services.
The basic idea of benefit approach is that tax is like a
price and it should be designed to maximize the
satisfaction which the consumers derive from his/her
payment for public services.
28 Benefit Principle:
Benefit Assessment of Benefit Principle: The principle justifies the :
imposition of tax. It combines
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.
This approach has...
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- Winter '12
- The Land