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

Quizplus · Accepted Answer

The ability-to-pay philosophy of taxation means that individuals and businesses should be taxed according to their ability to pay, based on their income, wealth, or resources. A progressive income tax is the best example of this philosophy, as it is based on the principle that those who earn more should pay a higher proportion of their income in taxes than those who earn less.

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