00/Index. mentid-55725918810213036740736 Aplia Homework: Economic Decision Maker

Question

00/Index. mentid-55725918810213036740736 Aplia Homework: Economic Decision Makers Attempts: Average: /1 Excessive alcohol consumption can lead to liver failure as well as deterioration of other organs. Suppose the government has opened several public clinics dedicated to helping alcoholics reduce their alcohol consumption. Now the government is trying to decide how to fund these clinics One suggestion is to raise the funds for the public clinics by imposing a tax on yachts. This tox follows: O The benefits-received principle ONeither the ability-to-pay nor the benefits-received principle The ability-to-pay principle

Explanation / Answer

Solution: The ability-to-pay principle

Explanation: Ability-to-pay taxation refers to a progressive taxation principle that states that taxes need to be levied according to ability to pay off a taxpayer, thus should not pay taxes beyond their wherewithal to pay the taxes

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