The argument that each person should pay taxes according to how well the individual can shoulder the burden is called

the ability-to-pay principle

Explanation:

Based on the information provided within the question it can be said that this argument is known as the ability-to-pay principle. Like mentioned in the question this principle states that the amount of money in taxes that an individual should pay, should be relevant to their economic status thus stating the level of burden that those taxes will create on the individual.