Question

Having been exposed to several public finance concepts and their relationship to Public Administration. Using what has been learned, respond to the followiing question. User charges, user fees and licenses are taxes by another name. Do you agree with this statement? Give reasons for your answer.

Answer 1

answer-

Yes, I agree with this statement that User charges, user fees and licenses are taxes by another name because these are extra charges which user has to pay for using services.

the first reason these charges are like taxes that these charges are provided to government just like taxes are paid to government.

second reason, these charges are used to invest in the economy of country like making public place, tolls, infrastructure etc.

People pay user fees for the use of many public services and facilities. At the federal level in the United States, there is a charge for walking to the top of the Statue of Liberty, to drive into many national parks, or to use particular services of the Library of Congress.

States may charge tolls for driving on highways or impose a fee on those who camp in state parks. Communities usually have entrance fees for public swimming pools and meters for parking on local streets as well as perhaps even parking spaces at public beaches, dump stickers and postage stamps.

In international development, user fees refer to a system fee for basic health care, education, or other services implemented by a developing country to make up for the costs of these services.

so, from above examples we can see how user fees or charges are like taxes but with different names.