Question

Which is an argument against the use of the ability-to-pay principal of taxation? (Select 1) It is difficult to determine who receives benefits from government spending. People are not willing to pay unless they receive something in return. People who earn more money have benefitted more from society. It reduces the incentive to work hard and take risks to succeed.

Answer 1

It reduces the incentive to work hard and take risks to succeed

Step-by-step explanation:

The argument against the use of the ability-to-pay principal of taxation is that It reduces the incentive to work hard and make more money and take risks to succeed .

Although Ability to pay principal of taxation believe that a person or an individual tax should depend on what the tax will tend to create to such individual when compared to the wealth of that individual, but many people argue that there should be equity , meaning everybody should pay the same tax rate in such a way that a person or an individual tax rate should not be higher or lesser than another person tax rate.