Question

Businesses and homeowners both benefit from police protection. how does this statement show the limitation of the benefits-received principle of taxation.

please help me I don't understandi this. :(

Answer 1

The benefits-received principle of taxation is limited when it comes to police protection because it is difficult to determine individual benefits. Police protection is a public good that benefits businesses and homeowners even if they don't directly pay for it.

Step-by-step explanation:

The statement that businesses and homeowners both benefit from police protection shows the limitation of the benefits-received principle of taxation. According to the benefits-received principle, individuals should pay taxes in proportion to the benefits they receive from government goods and services. However, with police protection, it is difficult to determine the specific benefit received by each individual or business. Additionally, police protection is considered a public good, which means that it is nonexcludable and nonrivalrous. This means that even if businesses and homeowners don't directly contribute to funding the police department, they still benefit from the protection provided.

Answer 2

The benefits received principle of taxation is the services or goods someone receives from the government because we pay taxes. The police are patrolling the streets and areas when we need them because the receive a salary from the government. The government is able to afford to pay them because individuals and businesses pay taxes that in turn pay their salary.