The two principles of taxation are the benefit principle and the ability-to-pay principle.

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Benefit principle - concept of taxation in public finance. It is said that whoever benefits more from public or government expenditure should pay more taxes to support the expenditure. Ability-to-pay principle - progressive taxation wherein people earning more are subject to bigger taxes because they have the ability to pay more. Taxes should be levied according to the individual's ability to pay. 

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