Benefit Principle

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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.
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"I am sure that relations between our countries have prerequisites for strengthening balanced bilateral ties in political, commercial realms, as well as attraction of foreign investments built upon equality and mutual benefit principles. Kyrgyzstan is set to continue its active cooperation with the Untied States in fight against international terrorism and other challenges and threats.
Henry Simons's view on distributive justice and its accomplishment through the system of progressive taxation was articulated almost seventy years ago and is not grounded in the ability to pay or benefit principles. (122) Instead, Simons focused on the issue of inequality and asserted that: [T]o avoid dissimulation and circumlocution, one may begin by saying what one thinks about inequality....
According to the first, known as the benefit principle, different citizens receive different levels of benefits from the state and the burden of funding government expenditures should be distributed among taxpayers according to the level of benefits received.
Originating in the discourse of political thought, the benefit principle suggests that governors obtain control over their subjects as a result of mutually beneficial relationships between themselves and those to be governed.
Although the benefit principle has some intuitive appeal, it features two main flaws.
The benefit principle was most influential in tax theory during the eighteenth century, but shortly after it lost much of its power, mainly as a result of critiques such as that of Mill.
The benefit principle treats government expenditures as a fixed cost and suggests allocating the tax burden among citizens without taking into account the fact that the benefits provided by the state are not fixed but rather vary depending on the political alignment of the government officials in charge.
(78) BLUM & KALVEN, supra note 39, at 35 (reviewing the historical tax literature on the benefit principle).
Second, he explores ideas of property, contract, harm and benefit principles, and remedies against harm "at the margin," - those blurry realms where boundaries are fuzzy, coordination and holdout problems are great, and Adam Smith's "invisible hand" is weak.
In the document it was emphasized that "in modern conditions international security should be based on mutual trust, equality, cooperation, and benefit principles. "In XX century inter dependence of States has increased, security and development became inseparable.