What is the difference between the benefit principle and ability-to-pay principle?

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asked Feb 14, 2021 90.6k views

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Kai Zimmer · Answer 1 · 2021-02-20T22:25:05+0000

Answer:

The principle recognises that the purpose of taxation is to pay for government services. If taxes are imposed according to the benefit principle, people pay taxes in proportion to the benefits they receive from government spending.

What is the difference between the benefit principle and ability-to-pay principle?

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