What does a tax system based on the ability-to-pay principle claim
A)All citizens should pay taxes based on the benefits they receive from government services.
B)All citizens should pay the same amount in taxes.
C)All citizens should pay taxes on only the income spent.
D)All citizens should make an equal sacrifice.

Question

Quizplus · Accepted Answer

A tax system based on the ability-to-pay principle claims that individuals should be taxed based on their ability to make a sacrifice or contribute to society, which is typically measured by their income or wealth. This principle aims to establish fairness by ensuring that those who have more resources contribute more to society than those who have less. Option D best captures this principle.

What Does a Tax System Based on the Ability-To-Pay Principle