ability to pay
Means to afford
Ability to pay is the financial capacity to meet an obligation—whether taxes, debts, or fees.
In taxation, the principle holds that those with greater resources should bear a larger share of the burden: Progressive tax rates are based on ability to pay.
Courts may consider ability to pay when setting fines or child support.
The phrase often surfaces in negotiations over what someone can reasonably afford.
- affordHave sufficient funds
- taxable incomeEarnings subject to taxation
- incomeRegular monetary receipts
- affordabilityState of being purchasable
- making ends meetEarning enough to survive
solvency · liquidity · deep pockets · economic justice · living within means · creditworthiness · credit check · progressive tax · tax burden · wealth · tax brackets · sliding scale · wealth distribution · debt-to-income ratio · economic disparity · fairness · budget · marginal tax rate
- taxationtax, income tax, sales tax, tax return, tax refund
- pricing termsprice, cost, fee, charge, rate
- public financepublic debt, budget deficit, tax revenue, budgets, expenditure
ability to payinsolvency
Inability to pay debts
bankruptcy · indigence · destitution · poverty · pennilessness
ability, capacity, unable, capable, disabled, disable, capability, abilities, incapacity