Taxation docx

TAXATION
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As a power itself - inherent power of the State to impose a proportionate burden
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As a means - one of the few ways the State raises revenue to support its existence and operations.
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As a process - method of imposing a tax to raise revenue by the legislative act of the Congress in passing a law or ordinance
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inherent power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects within its jurisdiction to raise revenues to carryout the legitimate objects of government.
TAXES
- enforced proportional contributions from persons and property levied by the lawmaking body of the State by its sovereignty for the support of the government and all public needs.
PURPOSES OF TAXATION
1.
Revenue or fiscal - provide funds or property to promote the general welfare and the protection of its citizens and enable it to finance its diverse activities.
2.
Non-revenue or regulatory Taxation may also be employed for purposes of regulation or control.
a) Imposition of tariffs on imported goods to protect local industries.
b) The adoption of progressively higher tax rates to reduce inequalities in wealth and income.
c)
The increase or decrease of taxes to prevent inflation or ward off depression.
SUMPTUARY PURPOSE OF TAXATION
- popularly known as the non-revenue or regulatory purpose of taxation- taxation is often employed as a device for regulation through which certain effects or conditions envisioned by the government maybe achieved.
THEORY AND BASIS OF TAXATION
- basis of taxation is found in the reciprocal duties of protection and support between the State and its inhabitants.
LIFEBLOOD OR NECESSITY THEORY
- constitutes the theory of taxation, which provides that the existence of government is a necessity- that the government cannot continue without means to pay its expenses- and that for these means it has aright to compel its citizens and property within its limits to contribute.