Ability to pay

Ability to pay

Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio.
In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values.
In context of taxation, notion that tax rates should be determined according to income or wealth.

Ability to Pay

A principle stating that persons or corporations who earn the same amount of money should be taxed in the same way, and that those who earn more should be taxed more. For example, the principle states that two individuals making $50,000 per year should be taxed the same amount, regardless of how they earned their income, while someone making $100,000 per year should be taxed more than either of the other persons. Ability to pay is the idea behind the progressive tax system in place in many countries. See also: Horizontal equity.
References in classic literature ?
We have only, in the first place, to discover a sufficiently eligible practitioner; and as soon as we make our want--and shall I add, our ability to pay a premium?-- known, our only difficulty will be in the selection of one from a large number.
This development will assist NYNJA in powering its distributed labor marketplace, allowing businesses to have real-time access to thousands of remote workers, including the ability to pay freelancers with crypto and fiat currencies.
Pritzker's "Fair Tax", which seeks to tie an individual's income tax burden to his or her "ability to pay." A taxpayer's ability to pay for anything is a personal assessment and not one that the government has the right to determine.
While fines have considerable advantages in the abstract, setting and enforcing fines accurately is informationally demanding, particularly when offenders may lack the ability to pay them.
They will be a direct benefit because their tax burden will be progressively based on their ability to pay. Similarly, for millennials, high property taxes will no longer be a challenge since their tax to support municipal services will be based on their ability to pay and not on the value of their home which may increase faster than their wages and their ability to pay.
The changes, expected from January, will affect about 350 people in the borough and include new ways of assessing who is eligible for care and their ability to pay. Under the new policies, people who only receive a day service will now be charged, although they will also have the opportunity to have a financial assessment of their ability to pay.
The trial court denied judgment of contempt, finding plaintiff had not presented evidence of defendant's ability to pay and that the payment requirement was without legal authority.
The hospital is aimed at provide world class state of the art treatment to eye patients, irrespective of their ability to pay. For Hides Collection Campaign the hospital has made following collection points for hides' donation, Main gate Al-Shifa Trust, 0331-5487820/ 051-5487820-4, Al-Shifa Trust,
When a parent has the ability to pay child support but refuses to do so, we will work with the proper authorities to hold them accountable for the sake of Michigans children.
'What is meant by bankruptcy is if the government failed in all these (ability to pay), whereby the salaries of more than a million government employees were not paid and the country's debts are not serviced.
Care based on 'ability to pay' WHEN the NHS was launched in 1948 by Nye Bevan it was based on three core principles: that it meets the needs of everyone; that it be free at point of delivery; that it be based on need not ability to pay.
Mohamed Abdel Aal, a board member of the Suez Canal Bank, said that reserve growth is the most important factor of strength that reassures international institutions and financiers, as it proves Egypt's ability to pay loans and their installments on time.