What's it: A tax is a mandatory levy by the government on an individual or other entity. There are many variations, including income tax, value-added tax, and capital gains tax. It has become the main source to cover government spending in
Tax
Ability to Pay Principle: The Who Pays What?
The ability-to-pay principle states that taxation should be based on the taxpayer's ability to pay. Lower-income individuals should pay less because they have a lesser ability to pay taxes. Conversely, wealthy or high-income individuals should bear a