What is the principle that justifies a regressive tax?
Question 6b of 10 - Taxes
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: What is the principle that justifies a regressive tax?
- The ability-to-pay principle
- The benefits-received principle
- The principle of diminishing marginal returns
- The principle of taxation without representation
The correct answer is: The benefits-received principle. Regressive taxation takes a larger percentage from the income of low-income people because these are the people who use most of the government services.
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