The "Ability-To-Pay" Principle of Taxation Is the Normative Idea That

question 28

Multiple Choice

The "ability-to-pay" principle of taxation is the normative idea that

• A)an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals.
• B)each individual should voluntarily contribute according to her ability to pay taxes.
• C)progressive taxes are more equitable than regressive taxes.
• D)two individuals earning the same income should have equal ability to pay, all else constant.

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Definitions:

Naive Idealism

A cognitive development stage often observed in young adults and teenagers, characterized by the belief in the perfectibility of humans and society, sometimes without a practical understanding of the complexities involved.

Imaginary Audience

The belief, particularly common during adolescence, that one is constantly being watched and judged by others.

Sense of Idealism

The capacity or tendency to envision things in their perfect form or to pursue ideals, often manifesting in young adults as a desire to improve the world.