Question

Which of the following types of taxation systems is supported by the argument that wealthy people value their marginal dollars less than poorer people for whom every dollar

is very important?
Benefits-Received
Both of the above
Ability-to-Pay
Neither of the above

Answer 1

The taxation system that aligns with the argument about wealthy people valuing their marginal dollars less than poorer people is the 'Ability-to-Pay' system.

Step-by-step explanation:

The taxation system that is supported by the argument that wealthy people value their marginal dollars less than poorer people is Ability-to-Pay. This concept suggests that individuals should be taxed according to their ability to bear the burden of taxation, taking into consideration their income and wealth. In this case, wealthier individuals are believed to have a greater capacity to contribute more to the tax system without significantly impacting their well-being, while poorer individuals would find every dollar crucial for their basic needs.

Learn more about Taxation systems