The ability to pay principle suggests that:
A)traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes.
B)people with different levels of income should be treated in the same manner.
C)individuals receiving the benefits should be those who pay for them.
D)those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.

Question

The ability to pay principle suggests that:
A)​traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes.
B)​people with different levels of income should be treated in the same manner.
C)​individuals receiving the benefits should be those who pay for them.
D)​those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.

Quizplus · Accepted Answer

The ability to pay principle holds that those with higher incomes or greater wealth should pay a greater proportion of their income or wealth in taxes than those with lower incomes or less wealth. This recognizes the idea that those who have more have a greater ability to contribute to society and support public services through taxation. This principle is generally accepted in modern tax systems as a way to promote equity and fairness.

The Ability to Pay Principle Suggests That