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Ability To Pay

  1. Finance borrower’s ability to meet principal and interest payment on long-term obligations out of earnings also called ability to service
  2.  Industrial relations ability of an employer especially a financial organization to meet a Union Financial demands from operating income
  3.  Municipal Bond issuers present and future ability to generate enough tax revenue to meet its contractual obligations taking into account all factors concerned with Municipal income and property values
  4.  taxation the concept that tax rates should vary with levels of wealth or income for example the progressive income tax 

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