Economics 101: Benefits Principle | SterlingTerrell.net

Economics 101: Benefits Principle


What is defined as the benefits principle?

The Benefits Principle is a principle that says people should be taxed based on the the benefits that they get.

A property tax to fund schools, levied against someone that has never had children, would violate the benefits principle.

Whereas, a gasoline tax, used to maintain roads, is paid more by people that drive more. This would follow the benefits principle.