Which principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level?
A)Ability-to-pay principle
B)Benefits-received principle
C)Regressive tax principle
D)Progressive tax principle

Question

Quizplus · Accepted Answer

The benefits-received principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level.
Key Takeaway: The government uses two principles in order to allocate taxes: the benefits-received principle and the ability-to-pay principle. According to the benefits-received principle, individuals are taxed based upon the benefits they receive, not their income level. The ability-to-pay principle maintains that people are taxed according to their income, no matter what the benefits they may or may not receive from the government.

Which Principle Maintains That the Government Should Tax Individuals in Accordance