Which of the following answers best reflects the ability-to-pay philosophy of taxation?
A) Property tax.
B) Progressive income tax.
C) Excise tax on gasoline.
D) Excise tax on cigarettes.

Question

Quizplus · Accepted Answer

The ability-to-pay philosophy of taxation states that individuals with higher incomes should pay a higher percentage of their income in taxes than those with lower incomes. The progressive income tax is designed to follow this philosophy, as it requires those with higher incomes to pay a higher percentage of their income in taxes.

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