Consider the Two Principles of Fair Taxation,the Benefits Principle and the Ability-To-Pay

question 144

Multiple Choice

Consider the two principles of fair taxation,the benefits principle and the ability-to-pay principle.

• A) Both state that people should pay taxes according to the benefits they receive from public services.
• B) Both state that people should pay taxes according to how easily they can bear the burden.
• C) Both are based on horizontal equity.
• D) Both present conflicting ideas on the fairness of taxes.
• E) Both are based on vertical equity.

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Definitions:

365-Day Year

A calendar method that assumes each year has 365 days for the purpose of interest calculation, ignoring leap years.

Milling Machine

A tool used in machining processes for shaping metal and other solid materials, utilizing rotary cutters to remove material.

Ordinary Simple Interest

Interest calculated only on the principal amount, not on the interest that accrues over time.

360-Day Year

An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.