Question

Excessive alcohol consumption can lead to liver failure as well as deterioration of other organs. Suppose the government has opened several public clinics dedicated to helping alcoholics reduce their alcohol consumption. Now the government is trying to decide how to fund these clinics. One suggestion is to raise the funds for the public clinics with a liquor tax. This tax follows: The benefits-received principle Neither the ability-to-pay nor the benefits-received principle The ability-to-pay principle

Answer 1

Answer:

The answer is: This tax follows: "The benefits-received principle"

Explanation:

There are two principles of tax fairness raised in the question:

+ The ability to pay principles: stating that people should pay amount of tax in accordance with the level of wealth and income they possess.

+ The benefits-received principles: stating that the amount of tax a taxpayer has to pay should be in accordance with the level of consumption of government's goods and services.

By re-visiting two concepts above, we come up with "The benefits-received principle" as the answer.

It is because the resources dedicated to building public clinics specializing in helping alcoholics reduce their alcohol consumption is funded from liquor consumers which is the majority group of people which will consume the services of these clinics.