The government once imposed a luxury tax on expensive new cars. This tax followed the ________ principle.

Question

Quizplus · Accepted Answer

The luxury tax on expensive new cars follows the ability-to-pay principle, as the tax is imposed on those who have the ability to pay for expensive cars. This principle aims to impose a greater tax burden on individuals with higher income, which is reflected in their ability to purchase luxury items.

The Government Once Imposed a Luxury Tax on Expensive New