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Any economists out there? Student who needs help!!? |
I'm in college, & need help with my macroeconomics class. I took a quiz, and got 5 questions wrong. My teacher is disputing that they're wrong, but I say they're right!! Thank you in advance for your help. The questions are: The ability-to-pay tax principle can't be applied to: (she said the correct answer was welfare). The ability to pay tax principle states that: Those with a greater ability to pay (such as those with a higher income, or those who own more property)should pay more taxes. I don't see how welfare (or her other choices of post office, & highway) fit into this principle. Yes, we as users of the highway & post offices pay taxes,(these services are supplied by the government) but people that use welfare also pay taxes. The only way I can see this to be a part of it, is that highways can make money by tolls & post offices by postage, & welfare is giving money away to citizens. Thank you, and I have 4 more, but no space to post, so I'm going to do individual questions. Welfare is essentially a negative tax, which goes right in hand with the ability-to-pay tax principle. They so lack an ability to pay that they are instead paid by the Social Security Insurance tax that everyone who can pay does. |
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