on 12 of 20 ncome Potential motivations or arguments regarding taxes are listed

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on 12 of 20 ncome Potential motivations or arguments regarding taxes are listed below. Place the label corresponding each item into the proper bin concerning the evaluation of taxes. Note: You will not need all the labels. should be treated equally Independence Solvency-Liquidi Taxes can be used to discourage undesirable activities, such as smoking. Justifiable Burden Principle Goal Profit Maximizatiorn It is justifiable that the wealthy shoulder a greater portion of the tax burden. Horizontal-Equity Principle Benefits-Received Principle Beneficiaries of a program should shoulder the burden of a tax. Ability-to-Pay Principle Goal of Attaining Social Objectives

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Particulars Evaluation principle Explanation People in the same economic situation should be treated equaly Horizontal equity principle As per Horizontal equity thoery individuals with similar income and assets should pay the same amount of taxes Taxes can be used to discourage undesirable activities Justifiable Burden principle As per this principle some products are taxed at a higher rate in order to discourage consumption. It is justifiable that the wealthy shoulder a greater portion of tax burden Ability to pay principle Ability-to-pay taxation is a progressive taxation principle? in which tax is levied based on the ability to pay Beneficiaries of a program should shoulder the burden of a tax Benefits -Received Principle As per benefit principle of taxation, tax is collected based on the benefits received.

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