Question

The concept that a tax should be levied based on a person's ability to pay, regardless of the benefits they receive, is known as:

• A. The benefits-received principle.
• B. The proportionality principle.
• C. The ability-to-pay principle.
• D. The progressive taxation principle.

Answer 1

Answer:

C. The ability-to-pay principle.

• This principle states that the amount of tax an individual pays should be determined by their income or wealth, reflecting their ability to pay.