The power of taxation is inherent in sovereignty; legislative in character; subject to constitutional and inherent limitations. Primary purpose of taxation on part of government is to promote the general welfare and protection of its citizens. Tax burden should be in proportion to the taxpayer's ability to pay.
The power of taxation is inherent in sovereignty; legislative in character; subject to constitutional and inherent limitations. Primary purpose of taxation on part of government is to promote the general welfare and protection of its citizens. Tax burden should be in proportion to the taxpayer's ability to pay.
The power of taxation is inherent in sovereignty; legislative in character; subject to constitutional and inherent limitations. Primary purpose of taxation on part of government is to promote the general welfare and protection of its citizens. Tax burden should be in proportion to the taxpayer's ability to pay.
1. inherent in sovereignty; 2. legislative in character; 3. subject to constitutional and inherent limitations.
What is the extent of the legislative power to tax? Subject to constitutional and inherent restrictions, the legislature has discretion to determine the following matters: (SPAM) 1. The subjects to be taxed; 2. The purpose or object of the tax, so long as it is a public purpose; 3. The amount or rate of the tax; and 4. The manner, means, and agencies of collection of the tax.
What are the aspects of taxation? The exercise of the power of taxation has two aspects: 1. Levying or imposition of the tax, which is a legislative act (taxation); and 2. Collection of the tax levied, which is essentially administrative in character (tax administration). Taxation + tax administration = the taxation System
What is the purpose of taxation? The primary purpose of taxation on the part of government is to provide funds or property with which to promote the general welfare and protection of its citizens. In its broadest and most general sense, taxation includes every imposition of charge or burden by the sovereign power upon persons, property, or property rights for the use and support of the government and to enable it to discharge its appropriate functions. What are the basic principles of a sound tax system?
1. Fiscal adequacy Sources of revenue should be sufficient to meet the demands of public expenditure. It also means that the revenues should be capable of expanding or contracting annually in response to variations in public expenditures.
2. Equality or theoretical justice The tax burden should be in proportion to the taxpayers ability to pay. This is the so-called ability-to-pay principle. Taxation should be uniform as well as equitable. 3. Administrative feasibility Tax laws should be capable of convenient, just, and effective administration.
What are the limitations on the power of taxation? 1. Constitutional limitations (DECEIVE SCARE) a. d ue process of law b. e qual protection of the laws c. non-impairment of the obligation of contracts d. e xemption of religious, charitable, and educational entities, non-profit cemeteries, and churches from property taxation e. no imprisonment for non-payment of a poll tax f. power of the President to veto any particular item or items in a revenue or tariff bill; g. e xemption of non-stock, non-profit educational institutions from taxation; h. non-impairment of the jurisdiction of the Supreme Court in tax cases i. concurrence by a majority of all the members of Congress for the passage of a law granting tax exemption j. no appropriation for religious purposes k. non-infringement of religious freedom l. e quity and uniformity of taxation 2. Inherent limitations (JENI P) a. territorial jurisdiction b. exemption from taxation of government entities c. non-delegation of the legislative power to tax d. international comity e. levy must be for a public purpose
What is taxation? Taxation is the process or means by which the sovereign, through its lawmaking body, raises income to defray the necessary expenses of government.
What is the basis of the power to tax?
1. The power of taxation proceeds upon the theory that the existence of government is a necessity; that it cannot continue without means to pay its expenses; and that for these means, it has a right to compel all its citizens and property within its limits to contribute.
2. The Benefits-Received Principle - The basis of taxation is found in the reciprocal duties of protection and support between the state and its inhabitants. In return for his contribution, the taxpayer receives the general advantages and protection which the government affords the taxpayer and his property. This is the benefits-received principle. One is compensation or consideration for the other: protection for support and support for protection.
What is the purpose of taxation? The primary purpose of taxation on the part of government is to provide funds or property with which to promote the general welfare and protection of its citizens. In its broadest and most general sense, taxation includes every imposition of charge or burden by the sovereign power upon persons, property, or property rights for the use and support of the government and to enable it to discharge its appropriate functions.