The "ability-to-pay" principle of taxation is the normative idea that
A)an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals.
B)each individual should voluntarily contribute according to her ability to pay taxes.
C)progressive taxes are more equitable than regressive taxes.
D)two individuals earning the same income should have equal ability to pay, all else constant.

Question

Quizplus · Accepted Answer

The "ability-to-pay" principle of taxation is based on the idea that individuals with higher incomes should bear a greater share of the tax burden because they have the ability to pay more. This principle is often used to justify progressive taxation, where the tax rate increases as income increases.

The "Ability-To-Pay" Principle of Taxation Is the Normative Idea That