Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which...

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Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which philosophy is more evident in the present US tax structure? Justify your answer.To which principle of taxation do you subscribe? Why?2.) Examine the graph below, and then answer the following two questions. 	 		 			 		 		 			 			 		 	  (a) What is the tax burden to the seller?(b) What is the tax burden to the buyer?3.) In what respect is the economic decision to move across international borders an investment decision?4.) What are the "twin" problems of the health care industry as viewed by society? How are they related?
	
Document Preview: 1.) Distinguish between the benefits-received and the ability-to-pay principles of taxation.  Which philosophy is more evident in the present US tax structure?  Justify your answer.To which principle of taxation do you subscribe?  Why?2.) Examine the graph below, and then answer the following two questions.(a) What is the tax burden to the seller?(b) What is the tax burden to the buyer?3.) In what respect is the economic decision to move across international borders an investment decision?4.) What are the "twin" problems of the health care industry as viewed by society?  How are they related?

David · Accepted Answer

solutions:
1) Benefit Received Principle 
The benefit-received principle of taxation asserts that households and businesses 
should purchase the goods and services of government in the same manner in which 
other commodities are bought i.e, the individuals who receive the benefit of a good or 
service should pay the tax necessary to supply that good or service. For example, 
gasoline taxes are typically earmarked for the financing of highway construction and 
repairs. Those who benefit from good roads pay the cost of those roads.

Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which philosophy is more evident in the present US tax structure? Justify your answer. To which principle of...

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