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Imagine Two Households each with an income of $65,000 per year. Household A consists of two married individuals both 51 years old with one child who is now 27 years old and out of the house. Household B consists of two married individuals who are 31 years old and have three young children, two of which attend day care. The Government in implementing policies to effect Tax Fairness will concentrate on:

Sagot :

Answer: A. The Benefits Principle

Explanation:

According to the Benefits Received principle, people should pay taxes based on the benefits they receive from the government. This is how the government will effect tax fairness.

For example, Household B has three young children, two of which are in day care while Household A does not have any children at that age. Household A and Household B should therefore not pay the same when it comes to educational taxes. Household B should pay more and Household A should pay less because an educated society is beneficial to everyone but to them, only indirectly.

The government, when carrying out tax equity, will focus on the principle of benefits, as shown in option A.

We can arrive at this answer because:

  • The principle of benefits is considered whenever the government needs to determine the tax rate of citizens.
  • This principle determines that people who use a particular social service must pay a higher tax rate than those who do not use that service.

An example of this can be seen in the families presented above, since, in relation to the tax paid to promote national education, both families must be taxed, since the entire population benefits from this service.

However, family B benefits more from this service, as they have three children who need education promoted by the government, unlike family A, who has an adult child and who have already graduated.

According to the principle of benefits, both families must pay taxes for education, but family B must pay a higher tax than family A.

More information:

https://brainly.com/question/18756607?referrer=searchResults

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