Definition of The Ability to Pay Principle

By
Mike Moffatt
Professor of Business, Economics, and Public Policy
  • Ph.D., Business Administration, Richard Ivey School of Business
  • M.A., Economics, University of Rochester
  • B.A., Economics and Political Science, University of Western Ontario
Mike Moffatt, Ph.D., is an economist and professor. He teaches at the Richard Ivey School of Business and serves as a research fellow at the Lawrence National Centre for Policy and Management.
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Mike Moffatt
Updated December 03, 2017

Definition:

The ability to pay principle is the widely held view that the amount of taxes someone pays should increase as their income increases.

Terms related to The Ability to Pay Principle:

  • Progressive Tax

About.Com Resources on The Ability to Pay Principle:

  • Should Income Tax Rates Depend on Lifetime Earnings?
  • Are Sales Taxes More Regressive Than Income Taxes?
  • Do Richer People Pay a Higher Proportion of Tax Under a Flat Tax?

Writing a Term Paper? Here are a few starting points for research on The Ability to Pay Principle:

Books on The Ability to Pay Principle:

  • Federal Taxation - Basic Principles

Journal Articles on The Ability to Pay Principle:

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Your Citation
Moffatt, Mike. "Definition of The Ability to Pay Principle." ThoughtCo, Jan. 29, 2020, thoughtco.com/definition-of-the-ability-to-pay-principle-1145939. Moffatt, Mike. (2020, January 29). Definition of The Ability to Pay Principle. Retrieved from https://www.thoughtco.com/definition-of-the-ability-to-pay-principle-1145939 Moffatt, Mike. "Definition of The Ability to Pay Principle." ThoughtCo. https://www.thoughtco.com/definition-of-the-ability-to-pay-principle-1145939 (accessed January 27, 2021).