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Economist Bonface
on Nov 05, 2024

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A theory of taxation that states that citizens should bear tax burdens in line with their ability to pay taxes is the

A) ability-to-pay principle.
B) equity principle.
C) benefits-received principle.
D) equal payment principle.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.

  • Understand the ability-to-pay principle of taxation and distinguish it from other taxation principles.
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Michael Silveira JrNov 08, 2024
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