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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?
  • Answers:
  1. The ability-to-pay principle
  2. The benefits-received principle
  3. The principle of diminishing marginal returns
  4. 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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