Ability to Pay
The principle that taxes should vary according to an individual's level of wealth or income.
Investopedia Commentary
The application of this principle is a progressive tax system, which is considered to be characteristic of a socialist sentiment. Many hard-line classical economists like Adam Smith believed any elements of socialism would destroy the initiative of the population within a free market economy. However, many countries have blended capitalism and socialism with a great degree of success.
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See also: Classical Economics, Economics, Flat Tax, Income Tax, Invisible Hand, Progressive Tax, Tax Bracket