[Answer] Ability-to-Pay Principle

Answer: The belief that people who can better afford the tax should have more of
the tax burden.
Ability-to-Pay Principle
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Ability to pay is an economic principle that states that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual.
Ability-To-Pay Taxation is a tax principle that asserts that taxes should be levied based on an individual’s ability to pay the tax. In other words individuals corporations. Corporation A corporation is a legal entity created by individuals stockholders or shareholders with the purpose of operating for profit.
The Ability to Pay Principle is a taxation principle. It states that the tax amount applied on an economic body (generally a business) should be directly proportional to that entity’s ability to pay. Back to: ACCOUNTING & TAXATION.
Definition: Ability to pay principle is the concept that individuals shouldn’t be required to pay taxes beyond their wherewithal to pay the taxes. In other words it’s a concept that determines the …

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