The use of a property tax to fund public schools is an example of _____.
A)the benefit principle at work
B)the ability-to-pay principle at work
C)a compromise between the benefit and ability-to-pay principles
D)the Ramsey rule at work

Question

Quizplus · Accepted Answer

A property tax is a tax on the value of property. The benefit principle states that people should pay taxes based on the benefits they receive from government services. The ability-to-pay principle states that people should pay taxes based on their ability to pay. A property tax is a compromise between these two principles because it takes into account both the value of property and the ability of the owner to pay.

The Use of a Property Tax to Fund Public Schools