The ability-to-pay principle of tax fairness is equivalent to which of the following?

Question

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The ability-to-pay principle states that individuals with higher income or wealth should bear a larger burden of taxes, as they have the ability to pay more. This is equivalent to collecting more taxes from people who can more easily bear the burden. Choice A is incorrect, as benefiting the most from provision of public services does not necessarily correlate with ability to pay. Choice C is incorrect, as a regressive income tax structure would actually violate the ability-to-pay principle. Choice D is incorrect, as a proportional income tax structure would treat all individuals equally, regardless of their ability to pay. Choice E is incorrect, as the ability-to-pay principle considers both horizontal equity (treating equals equally) and vertical equity (treating unequals unequally).

The Ability-To-Pay Principle of Tax Fairness Is Equivalent to Which