Taxation according to the ability-to-pay principle is best illustrated in the United States by:
A) sales taxes.
B) personal income taxes.
C) excise taxes.
D) user fees.

Question

Quizplus · Accepted Answer

Personal income taxes are based on the ability of an individual or household to pay. A person's income is directly correlated with their ability to pay taxes, so the more income they have, the more tax they ought to pay. This makes personal income taxes a good example of a tax that follows the ability-to-pay principle.

Taxation According to the Ability-To-Pay Principle Is Best Illustrated in the United