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Ability To Pay

Ability To Pay

What does an 'Ability To Pay' mean

Ability to pay is an economic principle stating that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual. The ability to pay principle suggests that the real amount of tax paid is not the only factor that has to be considered, and that other issues such as ability to pay should also factor into a tax system.

Explaining 'Ability To Pay'

The application of this principle is a progressive tax system, in which individuals with higher incomes are asked to pay more tax than individuals with lower incomes. Classical economists like Adam Smith believed any elements of socialism, such as a progressive tax, would destroy the initiative of the population within a free market economy. However, many countries have blended capitalism and socialism with a great degree of success.


Further Reading

Ability to pay for health care: concepts and evidenceAbility to pay for health care: concepts and evidence
academic.oup.com [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

Graduating economic sanctions according to ability to payGraduating economic sanctions according to ability to pay
heinonline.org [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

Operating cash flow ratios measure a retail firms ability to payOperating cash flow ratios measure a retail firms ability to pay
clutejournals.com [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

A re-examination of the use of ability to pay taxes by local governmentsA re-examination of the use of ability to pay taxes by local governments
www.sciencedirect.com [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

The ability-to-pay theory of taxationThe ability-to-pay theory of taxation
www.jstor.org [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

Ability-to-pay of RCMS in Poor Rural China [J]Ability-to-pay of RCMS in Poor Rural China [J]
en.cnki.com.cn [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

Access and ability to pay: the ethics of a tiered health care systemAccess and ability to pay: the ethics of a tiered health care system
jamanetwork.com [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …

A theoretical study on firms' ability to pay cash dividends [J]A theoretical study on firms' ability to pay cash dividends [J]
en.cnki.com.cn [PDF]
… 2. Approaches to ability to pay In conventional economics there is no accepted defini- tion of an affordable price: ' … These are called exchange Page 9. Ability to pay for health care 227 COMMON PROPERTY RIGHTS eg Grazing rights ENDOWMENTS OR ASSETS eg …


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