Which of the following is a justification for taxes?

A) The ability-to-pay principle
B) The progressive tax principle
C) The proportional tax principle
D) The regressive tax principle
E) The desire of government to spend more funds

Ability-to-Pay Principle

A taxation principle that suggests taxes should be levied based on the taxpayer's ability to pay, implying that those with higher incomes should pay more taxes.

Progressive Tax

A tax system where the tax rate increases as the taxable income or wealth increases, meaning higher earners pay a larger percentage of their income than lower earners.

Regressive Tax

A tax system where the tax rate decreases as the amount subject to taxation increases, placing a heavier burden on lower-income earners.