Question

    The principle of "Ability to Pay" in taxation is most

    closely associated with:
    A Proportional taxation. Correct Answer Incorrect Answer
    B Benefit principle. Correct Answer Incorrect Answer
    C Horizontal and vertical equity. Correct Answer Incorrect Answer
    D Tax simplicity. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Horizontal equity (equal treatment of equals) and vertical equity (unequal treatment of unequals) are derived from the ability-to-pay principle. It suggests taxes should be levied according to an individual's capacity to bear the burden.

    Practice Next
    More Research Questions
    ask-question