The progressive structure of the income-tax system is based on the

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The progressive structure of the income-tax system is based on the ability-to-pay principle, which means that those with higher incomes are expected to pay a larger percentage of their income in taxes, as they are seen as having a greater ability to pay. This principle is often used to justify progressive taxation as a means of reducing income inequality and promoting social justice. The benefits-received principle (A) is based on the idea that taxes should be based on the benefits that individuals receive from government services or programs, while the principle of diminishing returns (B) is a concept from economics that refers to the idea that the marginal benefits of a particular activity or input will eventually decrease as more of it is used. The statement in option D is a famous quote by US Supreme Court Justice Oliver Wendell Holmes Jr., but it does not provide an explanation of the progressive structure of the income-tax system.

The Progressive Structure of the Income-Tax System Is Based on the