The ability-to-pay principle of taxation:
A. suggests that people should pay taxes in proportion to the benefits they derive from public goods and services.
B. has been declared unconstitutional because it deprives individuals of property without due process of law.
C. suggests that the tax burden should vary directly with people's income and wealth.
D. suggests that the tax burden should vary inversely with people's income and wealth.
Answer: C
You might also like to view...
Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps
The U.S. is the world's largest creditor
Indicate whether the statement is true or false
Which of the following occurred during World War I (1914–18)?
(a) Private markets largely influenced resource allocation. (b) Non-market controls imposed by the government. (c) New income taxes financed 100 percent of the war. (d) Corporate America voluntarily financed 100 percent of the war efforts to protect their interests.
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
A) positive. B) negative. C) zero. D) not predictable.