The personal income tax and corporate income tax are examples of the benefits-received principle of taxation.

Question

Quizplus · Accepted Answer

The personal income tax and corporate income tax are examples of the ability-to-pay principle of taxation, not the benefits-received principle. The benefits-received principle suggests that taxes should be levied on those who benefit from government services, while the ability-to-pay principle argues that taxes should be based on the taxpayer's ability to pay, regardless of the benefits received.

The Personal Income Tax and Corporate Income Tax Are Examples