Question

How could we raise the funds if we wanted to follow the benefits-received principle

Answer 1

A principle of taxation which states that the burden of tax on an economic entity should be directly proportional to amount of benefits it receives from the use of public goods or services provided by government. In other words, consumers and businesses should pay to the government, the value of the public goods and services they have benefited from as if they were buying those goods and services. This means, for example, that people who travel by road more should pay more of the taxes used to construct and repair those roads and those who use roads less should pay small portion of the taxes to be spent on the roads.