The concept that people should pay taxes based on the benefits they receive from government services is called

A) the ability-to-pay principle.
B) the benefits principle.
C) horizontal equity.
D) vertical equity.

Ability-To-Pay Principle

A tax theory stating that taxes should be levied according to an individual or entity’s capacity to pay.

Benefits Principle

A theory in taxation stating that those who benefit from government services should pay taxes in proportion to the amount they benefit.

Government Services

Public programs and activities provided by the federal, state, and local governments to benefit their citizens.