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Q.

On which one of the followings is the benefits received principle of taxation to achieve optimality bases?

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a

Marginal benefit received

b

Ability to pay for the benefit

c

Average benefit received

d

Total benefit received

answer is D.

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Detailed Solution

According to the principle of income tax fairness known as the Benefits Received Principle, persons should pay taxes in proportion to the benefits they receive from the government.

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