Asked by Faustine Hudson on Apr 29, 2024
Verified
According to the ability-to-pay principle, it is fair for people to pay taxes based on their ability to handle the financial burden.
Ability-To-Pay Principle
A principle in taxation that holds that taxes should be levied according to an individual's or entity's capacity to pay.
Financial Burden
A financial burden is a substantial monetary load that may come in the form of debt, high costs, or other financial obligations that affect an individual's or entity's budget or financial well-being.
- Analyze the core principles of taxation and their influence on fairness and efficiency in taxation.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
True
Explanation :
The ability-to-pay principle of taxation states that taxes should be levied on individuals based on their ability to pay, meaning those with higher incomes should pay more in taxes than those with lower incomes, reflecting their greater capacity to handle the financial burden.
Learning Objectives
- Analyze the core principles of taxation and their influence on fairness and efficiency in taxation.