The Ability-To-Pay Principle Claims That a Person Should Pay Taxes

question 94

Multiple Choice

The ability-to-pay principle claims that a person should pay taxes according to

• A)the level of public education that the person has received throughout his lifetime.
• B)how many government services that person will receive.
• C)how well that person can shoulder the tax burden.
• D)the level of debt that the person has.

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Definitions:

Patented Item

An item or invention that is legally protected by a patent, granting its inventor exclusive rights to use, make, and sell it for a certain period.

Plant Assets

Long-term tangible assets used in the production of goods or services, typically including buildings, machinery, and equipment.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Intangible

Assets that lack physical substance but are identifiable and provide economic benefits, such as patents and trademarks.