Ability to Pay

Ability to Pay: "Ability to Pay What does it Mean? The principle that taxes should vary according to an individual's level of wealth or income. Investopedia Says... 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."