benefits-received principle of taxation

benefits-received principle of taxation

the principle that those who benefit most from government-supplied goods and services should pay the TAXES that finance them. The problem with this proposition, apart from the obvious difficulties of quantifying the benefits received by individuals, particularly as regards the provision of items such as national defence, fire service, etc., is that it cannot be reconciled with the wider responsibilities accepted by government in providing social services and welfare benefits, i.e. it would make no sense at all to tax an unemployed man in order to finance his unemployment pay. See ABILITY-TO-PAY PRINCIPLE OF TAXATION, REDISTRIBUTION OF INCOME PRINCIPLE OF TAXATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005