
Give yourself plenty of room to make mistakes.
This is what you need when you refuse to stop.
It is also necessary to persistence.
recovering economist
Give yourself plenty of room to make mistakes.
This is what you need when you refuse to stop.
It is also necessary to persistence.
[This is part of the series: The Complete Guide To Economics 101.]
What is defined as the ability-to-pay principle?
The Ability-to-Pay Principle is a principle that says that taxes should be taxed based on the ability to endure the burden.
A 70% income tax rate on incomes under the poverty line would obviously violate the ability-to-pay principle. Too much income tax, on too little income.
On the other hand, a progressive income tax rate, where higher taxes are paid on higher and higher amounts of income would follow the ability-to-pay principle.