In England the Thatcher government substituted a "poll tax" for the local property tax. People took strong exception to the tax, which is basically a head or "lump sum" tax. The principle of taxation such a tax violates is called

a. the benefits principle.
b. the excess burden principle.
c. the ability-to-pay principle.
d. the constitutional principle.

c

Economics

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Explain why a price ceiling, when applied to a market, inevitably generates chronic excess demand for the good

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Workers at a car-manufacturing plant are replaced by automated machinery. What type of unemployment best describes the workers' situation?

A. Structural unemployment B. Full unemployment C. Frictional unemployment D. Cyclical unemployment

Economics