Which of the Following Best Reflects the Ability-To-Pay Philosophy of Taxation

question 51

Multiple Choice

Which of the following best reflects the ability-to-pay philosophy of taxation?

• A) a tax on residential property
• B) a progressive income tax
• C) an excise tax on gasoline
• D) an excise tax on coffee

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Definitions:

Revenue

The income that a business receives from its normal business activities, typically from the sale of goods and services to customers.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing the company's investment in long-term assets.

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data points are.

Standard Deviation

A measure of the dispersion or spread of a set of values, calculated as the square root of the variance, indicating how much the values deviate from the mean.