capacity to pay

USAGE SUMMARY

"capacity to pay" is correct and usable in written English.
It is often used to refer to someone's ability to pay for something or to fulfill an obligation, such as a debt. For example, "The company's decreased production has reduced its capacity to pay back its debts."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

Slow-paying collateral curtails cash flow and impairs the firm's capacity to pay its vendors and employees.

Forbes

Smaller classes limit your capacity to pay your teachers well.

The Guardian

The principle for everybody is the capacity to pay".

The New York Times

Vertical equity means those who have the greatest capacity to pay taxes bear the greatest burden.

The New York Times

The cost of election campaigns has increased beyond their capacity to pay.

The Guardian

£64 tickets redefine the Arsenal or Bayern Munich "we" as those with the capacity to pay.

The Guardian - Opinion

Ireland now has a bailout bill it may not have the capacity to pay.

The New York Times

You can't get enough capacity to pay for what you want to do.

Independent

Our only missing link is the capacity to pay for the healthcare.

The Guardian

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

Capacity-to-pay was estimated from overall household expenditures, not household self-declared income.

Plosone

When we subtracted food from the overall household expenditures, mean household capacity-to-pay was $213.7 per month.

Plosone

Expert writing Tips

Best practice

When discussing economic policies or financial situations, use "capacity to pay" to clearly indicate the ability to meet financial obligations, especially in the context of taxes, healthcare, or debt.

Common error

Avoid using "capacity to pay" when you actually mean willingness to pay. "Capacity to pay" refers to the objective ability based on income and assets, while willingness to pay involves a subjective decision based on perceived value.

Linguistic Context

The phrase "capacity to pay" functions as a noun phrase, often acting as the subject or object of a sentence. It denotes the ability or means someone has to fulfill a financial obligation, as shown by Ludwig's examples relating to taxes, healthcare, and debt. The primary grammatical function is to describe a financial capability.

Expression frequency: Very common

Frequent in

Science

38%

News & Media

36%

Formal & Business

10%

Less common in

Academia

3%

Wiki

2%

Reference

0%

Ludwig's WRAP-UP

The phrase "capacity to pay" is a widely used and grammatically sound expression referring to the ability to meet financial obligations. Ludwig AI confirms its correct usage in various contexts, particularly in science, news, and formal business settings. While alternative phrases like "financial ability" or "ability to afford" exist, "capacity to pay" often implies a more formal assessment of financial resources. When using this phrase, ensure that it accurately reflects the objective financial capability rather than subjective willingness. Its frequent appearance in authoritative sources reinforces its validity and relevance in discussions about economics, healthcare, and taxation.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

payment ability

Highlights the capacity to complete a payment transaction.

means to pay

Emphasizes the available resources or methods for payment.

ability to afford

Specifically highlights the affordability aspect.

purchasing power

Relates specifically to the ability to buy goods and services.

financial ability

Focuses more broadly on the general ability to handle finances.

resource availability for payment

Focuses on the presence and accessibility of resources needed for paying.

financial resources

Highlights the overall financial resources available.

solvency

Refers to the state of being able to meet financial obligations.

economic capability

Broader term relating to economic strength and resources.

fiscal strength

Implies financial health and stability.

FAQs

How is "capacity to pay" typically measured in healthcare contexts?

In healthcare, "capacity to pay" is often assessed by calculating the remaining income after basic subsistence needs are met. It's also used to determine catastrophic health expenditure, which occurs when health spending exceeds a certain percentage of a household's "capacity to pay".

What factors influence a country's "capacity to pay" its debts?

A country's "capacity to pay" debts is influenced by its GDP, export revenues, foreign exchange reserves, and overall economic stability. Economic downturns or trade imbalances can significantly reduce a country's "capacity to pay".

How does "capacity to pay" relate to progressive taxation?

"Capacity to pay" is a central principle in progressive taxation, where those with a greater "capacity to pay" bear a larger tax burden. This ensures that taxes are distributed fairly based on income and wealth.

What's the difference between "ability to pay" and "capacity to pay"?

While similar, "ability to pay" is a more general term, while "capacity to pay" often implies a formal or calculated assessment of someone's financial resources after considering essential expenses. They can often be used interchangeably, but "capacity" suggests a deeper analysis of the objective financial situation.