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Ability to Pay

Ability to Pay

Description and Definition of Ability to Pay

Ability to Pay is a principle of taxation. Different taxpayers ability to pay differs vastly. Generally a taxpayer with less ability to pay pays less tax, because his/her amount of income (wages, interests, profits) and assets (houses, cars, stocks, savings accounts) are less than other taxpayers. Individuals who earn more income pay more tax, not because they use more government goods and services but because taxpayers who earn more have the ability to pay more. Our progressive tax, or higher tax rates for people with higher incomes, is based on this principle.


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Tax Abbreviations

Search for legal acronyms and/or abbreviations containing Tax in the legal abbreviations platform of the Encyclopedia of Law.

Maybe may be of interest a list of Abbreviations of Law Journals and Reviews and a short list of Law Journals and other legal publications Abbreviations.

IRS Tax Abbreviations

Here are a list of Abbreviations that are listed in the back of each Internal revenue Bulletin. The only ones we can identify as not listed are those for Internal Revenue Code Section and Treasury Regulation Section.

  • B.T.A.—Board of Tax Appeals.
  • C.B.—Cumulative Bulletin.
  • CFR—Code of Federal Regulations.
  • Ct.D.—Court Decision.
  • Del. Order—Delegation Order.
  • ERISA—Employee Retirement Income Security Act.
  • F.R.—Federal Register.
  • G.C.M.—Chief Counsel’s Memorandum.
  • I.R.B.—Internal Revenue Bulletin.
  • Pub. L.—Public Law.
  • Rev. Proc.—Revenue Procedure.
  • Rev. Rul.—Revenue Ruling.
  • S.P.R.—Statement of Procedural Rules.
  • Stat.—Statutes at Large.
  • T.C.—Tax Court.
  • T.D. —Treasury Decision.
  • T.I.R.—Technical Information Release.
  • U.S.C.—United States Code.