Title: The Ability to Pay Principle - Principle of The Ability to Pay
Headings: The Ability to Pay Principle
The Ability to Pay Principle
Table of Contents
Evolution of the Ability to pay principle
Concept of Ability-to-Pay
More Income – More Tax
Positive Aspects of Ability to Pay Principle
Criticisms of Ability to Pay Principle
Ability to Pay Principle Vs Flat Taxation
Conclusion

Content: Similarly, there are debates in favor of Ability-to-Pay Tax principle and against as well. Both the groups establish their argument on different logics. People with less income consider it a blessing because this taxation approach directly takes them under its shelter. It is argued by them that imposing same tax on the people with low income and higher earnings does not come under the parameters of justice. Moreover, getting higher tax from the people with more earnings will generate a sufficient revenue to support the government for providing services to the public. Betterment of public directly depends upon the revenue generated by the taxes. So, charging same tax to categories will demand to fix a small amount of taxes for compensating the groups with little income. Ultimately, less amount of taxes will be collected by the government authorities and it will affect the betterment of the public. Ability-to-Pay Tax principle ensures proper collection of taxes and maximum revenue generation. Criticisms of Ability to Pay Principle
It is claimed by the critics that this progressive approach of taxation has a major disadvantage.