Tax Policy with Professor Fisher

Tax Policy with Professor Fisher
Student’s Name
Institution
Tax Policy with Professor Fisher
The discussion about apportioning tax revolves around typically two major philosophies: the ability to pay and benefit received. The ability to pay principle dwells on the idea that the tax burden ought to be directed specifically to an individual’s income and wealth. The principle copes that persons or enterprises with massive incomes must pay more taxes compared to the ones with lower incomes. On the other hand, the benefit-received principle of taxation stands in great contrast with the ability to pay principle. It states that households and businesses should purchase the goods and services of the government in the same way as other goods. It also asserts that those who enjoy the provision of some certain commodities should incur the tax necessary for their supply. The ability to pay principle is associated with the income tax while the benefits received principle is associated with consumption.
Vertical equity is a tax-collecting method where persons are subject to tax increment relative to the amount of income earned. It basically states that a greater tax contri...