Benefit Principle

Benefit Principle

A philosophy stating that those who benefit most from government programs have an obligation to pay more for those programs. For example, shareholders in companies subsidized by the government may pay more under a tax system using the benefit principle. This contrasts with the ability to pay principle.
References in periodicals archive ?
Benefit principle: Benefit principle is in the multimedia courseware creation must adhere to the most important principle is the starting point and destination of the multimedia courseware creation.
Each GCC country has a different formula, but based on the same defined benefit principle [the differences are around the number of days, definition of salary or the use of a cap].
In "The Benefit Principle As Applied to Middle East Oil: Implications for US Energy Policy," professors Mohammed Akacem, John Faulkner, and Dennis Miller base their policy prescription on the following benefit principle of taxation: those who benefit more from the provision of a public good should pay more of the tax.
The win-win policy or mutual benefit principle guiding the cooperation framework between Japan and Africa should be practical so that Japan does not fall in the bracket of development partners, who use the African platform for their own selfish interests and more so to exploit natural resources in Africa.
We know two basic, and some would say: old-fashioned, criteria of equity in taxation, the benefit principle and the ability-to-pay principle.
From the federal perspective of encouraging stabilization, the federal government should take the position that the benefit principle of taxation should be used to the extent possible.
Chapter 3 Freakonomics cases reinforce Frank and Bernanke 's cost benefit principle and also illustrate fundamental economics principles such as a "winner take all " labor market.
Returning to the benefit principle, most studies indicate that agriculture pays more in property taxes than it receives in services.
The moral or merit good argument justifies financing the collective opportunity gain by means of general revenue rather than the benefit principle (general revenue being collected often on the ability to pay principle).
Observation: Severance payments are deductible business expenses even though severance costs embody an element of future benefit--the matching principle overrode the future benefit principle with the result that current deduction is appropriate.
The benefit principle, well known in public finance theory, suggests that people who benefit most from a good or service should pay the taxes associated with the public provision of that good or service in proportion to the benefits they receive.
With respect to the preceding comparison of Justi and Smith, the cameralist orientation that Justi represents is congruent with the benefit principle while Smith's approach to public finance is congruent with the welfare principle.