2.A.

Benefits-Received Principle
A principle of taxation which states that the burden of tax on an economic
entity should be directly proportional to amount of benefits it receives from
the use of public goods or services provided by government. In other words,
consumers and businesses should pay to the government, the value of the
public goods and services they have benefited from as if they were buying
those goods and services. This means, for example, that people who travel by
road more should pay more of the taxes used to construct and repair those
roads and those who use roads less should pay small portion of the taxes to
be spent on the roads.
2.B. What is Ability-To-Pay Taxation
Ability-to-pay taxation is a progressive taxation principle that maintains that taxes
should be levied according to a taxpayer's ability to pay. This progressive
taxation approach places an increased tax burden on individuals, partnerships,
companies, corporations, trusts, and certain estates with higher incomes.

The ability-to-pay taxation theory is that individuals who earn more money can
afford to pay more in taxes.

BREAKING DOWN Ability-To-Pay Taxation

Ability-to-pay taxation requires higher-earning individuals to pay a greater
percentage of their income towards taxes, compared to individuals with lower
incomes. The tax rate increases as a percentage along with income. For
example, as of 2018 for individuals in the United States, taxable income up to
$9,525 incurs a 10% income tax, while earnings over $500,000 face a 37%
income tax rate. Earnings between those amounts face tax rates as set by
income brackets.

3. TAX LAWS IN THE PHILIPPINES

3.A.