The Benefits Principle of Fairness of Taxes Is the Proposition

question 184

Multiple Choice

The benefits principle of fairness of taxes is the proposition that

• A) taxes should only be used to correct market failures.
• B) people should pay taxes according to how easily they can bear the burden.
• C) tax systems can only be fair if all people agree on them.
• D) people should pay taxes equal to their benefit from public services.
• E) the incidence of taxes should be equal across households.

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Definitions:

Unauthorized Contract

An agreement made by a person who does not have the legal authority to do so on behalf of a party.

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.

Valid

Legally sound, effective, and binding.

Contract for Sale

A legally binding agreement where one party agrees to sell and another agrees to buy goods or property under specified terms and conditions.