ability to pay principle definition

ability to pay principle

Economics concept that those who have more resources (wealth), or earn higher incomes, should pay more taxes. The ability to pay taxes (such as income tax or tax on luxury goods) are used as means of income redistribution.

ability to pay principle is in the Economics, Politics, & Society subject.

ability to pay principle appears in the definitions of the following terms: direct tax, indirect tax, benefit principle and ability to pay tax

This content can be found on the following page:

http://www.businessdictionary.com/definition/ability-to-pay-principle.html