The Ability-To-Pay Principle of Taxation

question 208

Multiple Choice

The ability-to-pay principle of taxation

• A) has been declared unconstitutional because it deprives individuals of property without due process of law.
• B) suggests that people should pay taxes in proportion to the benefits they derive from public goods and services.
• C) suggests that taxes should vary directly with people's income and wealth.
• D) suggests that taxes should vary inversely with people's income and wealth.

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Definitions:

Inventory List

A detailed record keeping all items or products held in stock by a business.

Purchase Discount

A reduction in the price of goods or services, offered by the seller to the buyer, typically for early payment or bulk buying.

Inventory Stock Status

A report or record showing the quantities, status, and conditions of items a company has in stock.

Non-inventory Item

A non-inventory item is a type of product or service that a business sells or buys but does not track as part of its inventory.