"The poor should not pay income taxes." This statement reflects which of the following principles of taxation? a. Fairness of contribution b. Benefits-received c. Inexpensive-to-collect d. Ability-to-pay

Short Answer

Expert verified
The correct answer is d. Ability-to-pay principle, which suggests that taxpayers should contribute based on their financial capacity.

Step by step solution

01

Understand the principles of taxation

Let's examine each principle: a. Fairness of contribution - This principle states that people should contribute to the tax system in a manner that is considered fair and reasonable. b. Benefits-received - This principle posits that taxpayers should pay taxes based on the benefits they receive from the government. For instance, people who receive more assistance or benefit from public services should pay more in taxes. c. Inexpensive-to-collect - This principle denotes that the cost of collecting taxes should be minimal so that more of the collected funds can be allocated for public purposes. d. Ability-to-pay - This principle asserts that taxpayers should contribute based on their ability to pay, with wealthier individuals paying a larger share to support government services.
02

Identify the principle that matches the statement

The statement "The poor should not pay income taxes" reflects the idea that those with less financial means should not be burdened with paying taxes. This matches the principle of "ability-to-pay" as it suggests that taxpayers should contribute based on their financial capacity. Therefore, the correct answer is: d. Ability-to-pay

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Which of the following statements is true? a. \(A\) sales tax on food is a regressive tax. b. The largest source of federal government tax revenue is individual income taxes. c. The largest source of state and local government tax revenue is sales taxes. d. All of the above are true.

Some cities finance their airports with a departure tax: every person leaving the city by plane is charged a small fixed dollar amount that is used to help pay for building and running the airport. The departure tax follows the a. benefits-received principle. b. ability-to-pay principle. c. flat-rate principle. d. public-choice principle.

According to the shortsightedness effect, politicians tend to favor projects with a. short-run benefits and short-run costs. b. short-run benefits and long-run costs. c. long-run benefits and short-run costs. d. Iong-run benefits and long-run costs.

since \(1975,\) total government expenditures as a percentage of GDP in the United States have a. fallen by half. b. remained fairly constant at about one-third. c. grown from one-fourth to one-half. d. grown from one-quarter to one-third.

Which of the following statements relating to public choice is true? a. A low voter turnout may result when voters perceive that the marginal cost of voting exceeds its marginal benefit. b. If the marginal cost of voting exceeds its marginal benefit, the vote is unimportant. c. Special-interest groups always cause the will of a majority to be imposed on a minority. d. All of the above are true.

See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free