Statements (1), (2) and (4) are correct. Statement (3) is wrong since progressive tax takes a larger share of tax from rich families (not poor). It does have very little effect on poor families. 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 benefit principle is the idea that the government spending should be met by the people who receive them. In other words, everyone who receives government spending should contribute towards it. The benefit principle was the justification for Margaret Thatcher's Poll Tax.