|
Title: The "ability-to-pay" principle of taxation is the normative idea that Post by: miks on Feb 28, 2019 Question 1. All of the following occur whenever a government taxes a product except• the quantity consumed of that product falls. • the price of that product rises. • the marginal benefit of the last unit sold exceeds the marginal cost of producing it. • there will be no excess burden if the government's tax revenue is sufficiently large to offset the deadweight loss. Question 2. The "ability-to-pay" principle of taxation is the normative idea that• an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals. • each individual should voluntarily contribute according to her ability to pay taxes. • progressive taxes are more equitable than regressive taxes. • two individuals earning the same income should have equal ability to pay, all else constant. Title: The "ability-to-pay" principle of taxation is the normative idea that Post by: jrhome1985! on Feb 28, 2019 Content hidden
|