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An ability to pay is an individual's level of wealth or income as a measure of the tax rate they can afford to pay.

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10y ago

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What is a tax that varies with a person's ability to pay?

A progressive tax is one that varies with a person's ability to pay.


What is the word for the ability to pay debt in your local currency It begans with soverign or a derivation there of.?

the ability to pay bills


Benefits principle differ from the ability to pay principle?

The benefits principle states that individuals should pay taxes in proportion to the benefits they receive from government services. In contrast, the ability-to-pay principle suggests that individuals should pay taxes based on their ability to pay, regardless of the benefits they receive. The benefits principle focuses on equity based on usage, while the ability-to-pay principle considers fairness in relation to earnings or wealth.


What is tax capacity?

ability to pay tax


What is the measure of a person's ability to pay back a loan?

a can


What is taxing someone to their ability to pay?

A Progressive tax.


What is the desire to own something and the ability to pay for it?

The desire to own something and the ability to pay for it is defined as "demand." Similar words to desire include "necessity", "requirement", and "pursuit."


Why bankers require collateral from borrowers?

incase people will pay back ability to pay back


Do you have to prove you cannot pay to have foreclosure?

Foreclosure is preceeded by you having not paid on your mortgage not your ability to pay.


What is the ability to pay principle of taxation?

Benefit taxation can relate only to the financing of public services and not to the redistributive function of the tax transfer process.Under this approach, the tax problem is viewed by itself, independent of the expenditure determination.Horizontal EquityTaxationaccording to ability to pay calls for people with equal capacity to pay the sameVertical EquityFor people with greater ability to pay, they pay more. Person A , whose income is higher , should pay more than B. Implementation of either rule requires a quantitative measure of ability to pay . Ideally this measure is reflected in income, expenditure and wealth.


Is travel in England limited?

Travel in England is limited only by your ability to walk, or your ability to pay for transportation


Why are Americans taxed in proportion to their incomes?

The ability-to-pay principle of taxation states that people with higher incomes have a greater ability to pay taxes than people with lower incomes.