ability-to-pay


ability-to-pay
The principle that taxes should vary according to an individuals level of wealth or income.

Progressive taxes attempt to reduce the tax burden of people with a lower ability-to-pay.


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Look at other dictionaries:

  • Ability To Pay — An economic principle stating that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual. The ability to pay principle suggests that the real amount of tax… …   Investment dictionary

  • ability-to-pay — The principle that taxes should be levied on the basis of the taxpayer s ability to pay. This normally leads to the view that as income or wealth increases, its marginal utility (its value to its owner) decreases, so that higher rates of tax can… …   Accounting dictionary

  • ability to pay — The principle that taxes should be levied on the basis of taxpayers ability to pay. This normally leads to the view that as income or wealth increases, its marginal utility (its value to its owner) decreases so that higher rates of tax can be… …   Big dictionary of business and management

  • ability to pay — capacity to pay, having the necessary resources to pay; principle that wealthier people who can afford to pay higher taxes ought to be required to do so (Economics) …   English contemporary dictionary

  • ability to pay — Refers to the borrower s ability to make interest and principal payments on debts. Bloomberg Financial Dictionary See: fixed charge coverage ratio. Bloomberg Financial Dictionary In context of municipal bonds, refers to the issuer s present and… …   Financial and business terms

  • ability-to-pay principle — ➔ principle …   Financial and business terms

  • ability to pay principle — UK US noun [S] ► TAX, ECONOMICS the principle that people should pay tax according to how much money they earn …   Financial and business terms

  • Ability-to-pay-Principle —   [ə bɪləti tə peɪ prɪnsəpl, englisch] das, Grundsatz für die Verteilung der Steuerlast (Leistungsfähigkeitsprinzip) …   Universal-Lexikon

  • Ability-To-Pay Taxation — Taxation in the form of a progressive tax. The ability to pay principle in taxation maintains that taxes should be levied according a taxpayer s ability to pay. This progressive taxation approach places an increased tax burden on individuals,… …   Investment dictionary

  • ability to pay debts — See able to pay; insolvency …   Ballentine's law dictionary

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