Individual income taxes illustrate the ability-to-pay principle of taxation.

Name: Individual income taxes illustrate the ability-to-pay principle of taxation.
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The ability-to-pay principle is based on the idea that individuals who have a greater ability to pay taxes, due to their higher income or wealth, should pay a higher percentage of their income in taxes. Individual income taxes are designed to reflect this principle, with progressive tax rates that increase as income levels rise.

Individual Income Taxes Illustrate the Ability-To-Pay Principle of Taxation