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Question : The 'Ability to Pay' Principle of Taxation is given by

Option 1: Adam Smith

Option 2: Edgeworth

Option 3: Joan Robinson

Option 4: J.S. Mill


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Adam Smith


Solution : The correct option is Adam Smith

The 'Ability to Pay' concept states that individuals and companies should only pay taxes in proportion to their financial resources derived from their wealth or income. This principle was ideated by Adam Smith, one of the pioneers of contemporary economics.

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