The Ability-To-Pay Principle of Taxation

question 1

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 the tax burden should vary directly with people's income and wealth.
• D) suggests that the tax burden should vary inversely with people's income and wealth.

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Agreeableness

Refers to a personality trait characterized by warmth, kindness, cooperation, and a tendency to avoid conflict.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability.

Neuroticism

A personality trait characterized by moodiness, worry, anxiety, and emotional instability.