According to the ability-to-pay principle, it is fair for people to pay taxes based on their ability to handle the financial burden.

Question

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The ability-to-pay principle of taxation states that taxes should be levied on individuals based on their ability to pay, meaning those with higher incomes should pay more in taxes than those with lower incomes, reflecting their greater capacity to handle the financial burden.

According to the Ability-To-Pay Principle, It Is Fair for People