ability to pay
n.
capacity to pay, having the necessary resources to pay; principle that wealthier people who can afford to pay higher taxes ought to be required to do so (Economics)
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
ABILITY TO PAY
CAPACITÀ DI PAGARE. CAPACITÀ CONTRIBUTIVA. SOLVIBILITÀ
ABILITY-TO-PAY
CAPACITÀ DI PAGARE. CAPACITÀ CONTRIBUTIVA. SOLVIBILITÀ