Which of the following best reflects the ability-to-pay philosophy of taxation?
A)an excise tax on coffee
B)an excise tax on gasoline
C)a progressive income tax
D)a tax on residential property

Question

Which of the following best reflects the ability-to-pay philosophy of taxation?
A)an excise tax on coffee 
B)an excise tax on gasoline 
C)a progressive income tax 
D)a tax on residential property

Quizplus · Accepted Answer

The ability-to-pay philosophy of taxation is based on the idea that those who have more income or wealth should pay a larger share of their income or wealth in taxes. A progressive income tax is a tax system in which the tax rate increases as the taxable amount increases. This is consistent with the ability-to-pay philosophy, as those with higher incomes pay a higher percentage of their income in taxes. Choices A, B, and D do not necessarily correspond to the ability-to-pay philosophy of taxation.

Which of the Following Best Reflects the Ability-To-Pay Philosophy of Taxation