The ability-to-pay principle of taxation

A) has been declared unconstitutional because it deprives individuals of property without due process of law.
B) suggests that people should pay taxes in proportion to the benefits they derive from public goods and services.
C) suggests that taxes should vary directly with people's income and wealth.
D) suggests that taxes should vary inversely with people's income and wealth.

Ability-to-pay Principle

A tax principle stating that taxes should be levied according to an individual's or entity’s capacity to pay, typically measured by income or wealth.

Constitutional

Relating to the system of beliefs and laws that governs the organization and operation of a state or organization, typically documented in a written constitution.

Public Goods

Public goods are characterized by their non-excludability and non-rivalrous consumption, meaning they can be used by everyone and one person's use does not diminish another's, such as clean air or public parks.