Asked by HANNAH MARTE on May 10, 2024
Verified
The federal income tax is consistent with the __________ principle of taxation, whereas an excise tax on sporting event tickets is consistent with the ___________ principle of taxation.
A) benefits-received; ability-to-pay
B) benefits-received; pay-as-you-go
C) ability-to-pay; benefits-received
D) ability-to-pay; pay-as-you-go
Benefits-received Principle
The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.
Ability-to-pay Principle
A taxation principle suggesting that taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.
- Achieve knowledge on the essential principles and classifications of tax systems, including regressive, progressive, proportional, and benefits-received taxes.
Verified Answer
ST
Sarah TaylorMay 11, 2024
Final Answer :
C
Explanation :
The federal income tax is based on the ability-to-pay principle, meaning taxes are levied according to an individual's or entity's ability to handle the financial burden. On the other hand, an excise tax on sporting event tickets aligns with the benefits-received principle, as it is imposed on goods or services and paid by those who benefit directly from those goods or services.
Learning Objectives
- Achieve knowledge on the essential principles and classifications of tax systems, including regressive, progressive, proportional, and benefits-received taxes.