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) | ||||
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ABILITY TO PAY definition was found in categories: Business & Finance(2)
ABILITY TO PAY Definition from Business & Finance Dictionaries & Glossaries
| Campbell R. Harvey's Hypertextual Finance Glossary |
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.
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.
| BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin. |
ABILITY TO PAY
A Borrower's ability to meet his financial obligation. Example: One of the critical criteria for a lending institution is to determine a borrower's ability to repay a loan.
A Borrower's ability to meet his financial obligation. Example: One of the critical criteria for a lending institution is to determine a borrower's ability to repay a loan.