Asked by SamanthaRey Colón on Jul 28, 2024
Verified
The personal income tax is based on the benefits-received principle of taxation.
Personal Income Tax
A tax levied on an individual's income, including wages, salaries, and other earnings, by the government.
Benefits-Received Principle
A theory in tax policy stating that taxes should be levied in accordance with the level of government services and benefits an individual or entity receives.
- Interpret the principles of taxation and their application in funding government activities.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
False
Explanation :
The personal income tax is based on the ability-to-pay principle of taxation, which means that those who earn more should pay a higher percentage of their income as tax. The benefits-received principle is typically used for things like user fees or tolls, where individuals pay for the specific benefits they receive from a particular service or resource.
Learning Objectives
- Interpret the principles of taxation and their application in funding government activities.
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