Describe the Ability-To-Pay Principle of Taxation

question 12

Essay

Describe the ability-to-pay principle of taxation. Use an example to demonstrate the difference between horizontal and vertical equity.

---

Definitions:

Unique Traits

Characteristics or features that distinguish an individual or species from others.

Adaptive Trait

A characteristic of an organism that has been favored by natural selection and increases the fitness of the individual in its environment.

Phenotypically Different

Exhibiting differences in physical and physiological traits as a result of variations in genetic expression or environmental influences.

Species Diversity

A measure of diversity within an ecological community that incorporates both the number of species present and their relative abundance.