14. The ability-to-pay principle of taxation states that
A) only people who have the ability to pay should be taxed
B) those who benefit from government should pay for them
C) people should be taxed according to their ability to pay
D) the government should assess taxes only if it is clear that citizens will pay

The correct answer is (c)

Explanation:

The ability to pay principle is a concept that promotes a tax system where individual should pay taxes according to their ability to pay. The ability to pay is recognized according to the earned income of the individual. The person who earns more should pay more tax. It is an effective tax system which will help the poor class to fulfil their daily needs.

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