Question
What is the principle that justifies a regressive tax?
Responses
principle of taxation without representation
principle of taxation without representation
principle of diminishing marginal returns
principle of diminishing marginal returns
benefits-received principle
benefits-received principle
ability-to-pay principle
Responses
principle of taxation without representation
principle of taxation without representation
principle of diminishing marginal returns
principle of diminishing marginal returns
benefits-received principle
benefits-received principle
ability-to-pay principle
Answers
There are no human answers yet.
Answered by
GPT-4o mini
The principle that justifies a regressive tax is typically the **benefits-received principle**. This principle suggests that individuals should pay taxes in relation to the benefits they receive from public services and goods. In a regressive tax system, lower-income individuals may pay a higher percentage of their income in taxes compared to higher-income individuals, but they might receive significant benefits from certain government services, hence the justification.
While the **ability-to-pay principle** is often associated with progressive taxation (where higher earners pay a larger proportion of their income), the benefits-received principle can be invoked to justify particular regressive taxes, particularly if the services funded by such taxes are seen as disproportionately benefiting lower-income individuals.
While the **ability-to-pay principle** is often associated with progressive taxation (where higher earners pay a larger proportion of their income), the benefits-received principle can be invoked to justify particular regressive taxes, particularly if the services funded by such taxes are seen as disproportionately benefiting lower-income individuals.
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