The federal income tax is consistent with the __________ principle of taxation, whereas an excise tax on sporting event tickets is consistent with the ___________ principle of taxation.

Question

Quizplus · Accepted Answer

The federal income tax is based on the ability-to-pay principle, meaning taxes are levied according to an individual's or entity's ability to handle the financial burden. On the other hand, an excise tax on sporting event tickets aligns with the benefits-received principle, as it is imposed on goods or services and paid by those who benefit directly from those goods or services.

The Federal Income Tax Is Consistent with the __________ Principle