The Ability-To-Pay Principle Regarding Taxes Suggests That

question 124

Multiple Choice

The ability-to-pay principle regarding taxes suggests that:

• A)the efficiency of a tax is the key feature in designing it.
• B)those who can afford it should bear the greater burden of the tax.
• C)those who benefit most from the tax should bear the greater burden of the tax.
• D)higher-income individuals should pay the same amount as lower-income individuals.

---

Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash payments or additional shares.