There is a later version of the benefit theory known as the " voluntary exchange " theory.
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Influential theories have been the ability theory presented by Arthur Cecil Pigou and the benefit theory developed by Erik Lindahl.
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Under the benefit theory, tax levels are automatically determined, because taxpayers pay proportionately for the government benefits they receive.
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"In the Bush administration, the focus is on smarter regulation, defined as applying science, engineering and economics, to proposed rules, " said Graham, who became known for his cost-benefit theories after founding the Harvard Center for Risk Analysis.
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The Court of Appeals concluded that the " tax benefit theory " applied by the Tax Court " seems to be an injection into the law of an equitable principle, found neither in the statutes nor in the regulations . " Because the Tax Court's reasoning was not embodied in any statutory precept, the court held that the Tax Court was not authorized to resort to it in determining whether the recovery should be treated as income or return of capital.
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