The _______ principle implies that people with _______ should pay more taxes.
A) ability-to-pay; greater benefits received
B) benefits-received; higher incomes
C) ability-to-pay; higher incomes
D) benefits-received; fewer benefits

Question

Quizplus · Accepted Answer

The ability-to-pay principle states that individuals who have a higher income or ability to pay should contribute more in taxes. This is because they have the financial capacity to pay more and therefore can bear a higher tax burden compared to those with lower incomes. The principle of greater benefits received implies that those who benefit more from the government's services should pay more taxes, which is not the same as the ability-to-pay principle. Therefore, option A is incorrect. Option B is also incorrect because it is based on the benefits-received principle, not the ability-to-pay principle. Option D is incorrect because it suggests that those who receive fewer benefits should pay more in taxes, which is counterintuitive.

The _______ Principle Implies That People with _______ Should Pay

The _ Principle Implies That People with _ Should Pay