Some colleges charge all students the same "activity fee." Suppose that students differ by how many campus activities they engage in. This charge is most like
A)an excise tax which conforms to the benefits principle.
B)an excise tax which violates the benefits principle.
C)a lump-sum tax which conforms to the benefits principle.
D)a lump-sum tax which violates the benefits principle.

Question

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount paid by everyone, regardless of usage or benefit. Charging all students the same activity fee, regardless of how many activities they engage in, does not align with the benefits principle, which suggests that those who benefit more should pay more.

Some Colleges Charge All Students the Same "Activity Fee