Asked by
Jabes37 Gonzalez
on Oct 26, 2024
Verified
The argument for progressive taxes is based on the ability-to-pay principle.
Progressive Taxes
Taxation that takes a larger percentage of income from high-income earners than from low-income earners, aimed at reducing income inequality.
Ability-To-Pay Principle
The concept that taxes should be levied according to an individual's or entity's ability to bear them, typically resulting in higher earners paying more taxes.
- Identify the distinctions between the array of principles underpinning taxation policies, like the benefits principle and the ability-to-pay principle.
- Analyze the efficiency and equity trade-offs inherent in tax policies and the economic rationale behind them.
Verified Answer
CC
Learning Objectives
- Identify the distinctions between the array of principles underpinning taxation policies, like the benefits principle and the ability-to-pay principle.
- Analyze the efficiency and equity trade-offs inherent in tax policies and the economic rationale behind them.
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