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.