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Questions and Answers
How does the power of taxation primarily differ from the power of eminent domain?
How does the power of taxation primarily differ from the power of eminent domain?
- Taxation is primarily for revenue generation, while eminent domain involves acquiring property for public use with compensation. (correct)
- Taxation aims to regulate behavior, while eminent domain focuses on revenue generation.
- Taxation requires just compensation, while eminent domain does not.
- Taxation is limited to tangible property, while eminent domain can acquire intangible assets.
Which characteristic is common to taxation, eminent domain, and police power?
Which characteristic is common to taxation, eminent domain, and police power?
- They are all methods by which the state can interfere with private rights. (correct)
- They are all primarily used for regulating interstate commerce.
- They all require explicit constitutional authorization.
- They all involve financial compensation to affected parties.
A local government enacts a law that restricts the height of buildings to ensure access to sunlight for all residents. This action primarily reflects the use of which inherent power?
A local government enacts a law that restricts the height of buildings to ensure access to sunlight for all residents. This action primarily reflects the use of which inherent power?
- Delegated power, as the state delegates this authority to the local government.
- Taxation, as it generates revenue for urban planning.
- Police power, as it promotes public welfare by regulating the use of property. (correct)
- Eminent domain, as it regulates property use.
If the state legislature imposes a new tax on luxury goods to fund public education, which inherent power of the state is being exercised?
If the state legislature imposes a new tax on luxury goods to fund public education, which inherent power of the state is being exercised?
What is the key distinction between taxation and police power in terms of their primary purpose?
What is the key distinction between taxation and police power in terms of their primary purpose?
Which of the following accurately describes the scope of the power of eminent domain?
Which of the following accurately describes the scope of the power of eminent domain?
Under what circumstances can contracts be impaired based on the information provided?
Under what circumstances can contracts be impaired based on the information provided?
What is the primary distinction regarding who exercises the power of taxation versus the power of eminent domain?
What is the primary distinction regarding who exercises the power of taxation versus the power of eminent domain?
What is the direct benefit received by an individual when the state exercises its power of eminent domain?
What is the direct benefit received by an individual when the state exercises its power of eminent domain?
Which of the following powers involves a transfer of property rights to the State?
Which of the following powers involves a transfer of property rights to the State?
Which theory posits a 'give and take' or symbiotic relationship between the individual and the State regarding the power of eminent domain?
Which theory posits a 'give and take' or symbiotic relationship between the individual and the State regarding the power of eminent domain?
How do taxes relate to public funds after they are collected by the government?
How do taxes relate to public funds after they are collected by the government?
Which of the following powers primarily aims at promoting the general welfare and protection of the public, even if it may affect individual rights?
Which of the following powers primarily aims at promoting the general welfare and protection of the public, even if it may affect individual rights?
Which characteristic is NOT considered essential for a tax?
Which characteristic is NOT considered essential for a tax?
A tax levied on the production of cigarettes is best classified under which subject matter?
A tax levied on the production of cigarettes is best classified under which subject matter?
Which principle of a sound tax system focuses on ensuring that the tax is sufficient to meet government expenditures and public needs?
Which principle of a sound tax system focuses on ensuring that the tax is sufficient to meet government expenditures and public needs?
Which factor is most closely associated with the 'Administrative Feasibility' principle of a sound tax system?
Which factor is most closely associated with the 'Administrative Feasibility' principle of a sound tax system?
What is a key consideration within the 'Theoretical Justice' principle of a sound tax system?
What is a key consideration within the 'Theoretical Justice' principle of a sound tax system?
If a tax system disproportionately burdens lower-income individuals, it would be considered a violation of which principle?
If a tax system disproportionately burdens lower-income individuals, it would be considered a violation of which principle?
A local government imposing a property tax falls under which classification based on authority imposing the tax?
A local government imposing a property tax falls under which classification based on authority imposing the tax?
A flat tax, where everyone pays the same percentage regardless of income, is an example of what type of rate or progression?
A flat tax, where everyone pays the same percentage regardless of income, is an example of what type of rate or progression?
Which type of tax is levied based on a fixed amount per unit, regardless of the item's value?
Which type of tax is levied based on a fixed amount per unit, regardless of the item's value?
What is the primary consequence of a tax measure that is deemed unconstitutional?
What is the primary consequence of a tax measure that is deemed unconstitutional?
A local government aims to fund a new public hospital primarily through taxation. Which characteristic of the power to tax is BEST exemplified by this action?
A local government aims to fund a new public hospital primarily through taxation. Which characteristic of the power to tax is BEST exemplified by this action?
A country decides to eliminate income tax for its citizens but increases consumption tax significantly to maintain its revenue. How does this shift primarily reflect the scope of legislative power to tax?
A country decides to eliminate income tax for its citizens but increases consumption tax significantly to maintain its revenue. How does this shift primarily reflect the scope of legislative power to tax?
Which of the following scenarios BEST illustrates the principle that taxation is for the benefit of the public?
Which of the following scenarios BEST illustrates the principle that taxation is for the benefit of the public?
A law is passed that taxes all religious organizations at a higher rate than other non-profit organizations. Which characteristic of the power to tax is MOST likely being challenged in court?
A law is passed that taxes all religious organizations at a higher rate than other non-profit organizations. Which characteristic of the power to tax is MOST likely being challenged in court?
A country introduces a new tax on luxury goods to fund social programs for low-income families. Which combination of purposes does this taxation BEST exemplify?
A country introduces a new tax on luxury goods to fund social programs for low-income families. Which combination of purposes does this taxation BEST exemplify?
Which scenario demonstrates a violation of the essential element that taxes must be levied by the law-making body of the State?
Which scenario demonstrates a violation of the essential element that taxes must be levied by the law-making body of the State?
If a tax law disproportionately burdens a specific industry without a clear public benefit, which essential element of taxation is MOST likely being questioned?
If a tax law disproportionately burdens a specific industry without a clear public benefit, which essential element of taxation is MOST likely being questioned?
A government offers tax exemptions to companies investing in renewable energy. Which characteristic BEST describes this use of legislative power?
A government offers tax exemptions to companies investing in renewable energy. Which characteristic BEST describes this use of legislative power?
Which of the following scenarios BEST demonstrates a tax that is NOT proportionate in character?
Which of the following scenarios BEST demonstrates a tax that is NOT proportionate in character?
A local council imposes a 'community improvement levy' on all residents to fund a park upgrade. What element makes this an enforced contribution, rather than a voluntary donation?
A local council imposes a 'community improvement levy' on all residents to fund a park upgrade. What element makes this an enforced contribution, rather than a voluntary donation?
Which of the following accurately describes the difference in the source of taxing power between the national and local governments?
Which of the following accurately describes the difference in the source of taxing power between the national and local governments?
A local government unit (LGU) seeks to impose a new tax on a specific industry within its jurisdiction. Which action must the LGU undertake to validly implement this tax?
A local government unit (LGU) seeks to impose a new tax on a specific industry within its jurisdiction. Which action must the LGU undertake to validly implement this tax?
A business operates within a municipality and is subject to both national and local taxes. If the business disputes the legality of a newly implemented local tax, which avenue should the business pursue to contest the tax?
A business operates within a municipality and is subject to both national and local taxes. If the business disputes the legality of a newly implemented local tax, which avenue should the business pursue to contest the tax?
Which of the following scenarios best illustrates the concept of 'delegated power' in the context of local taxation?
Which of the following scenarios best illustrates the concept of 'delegated power' in the context of local taxation?
Which of the following pairs correctly matches the government body primarily responsible for the levying and assessment/collection of national taxes?
Which of the following pairs correctly matches the government body primarily responsible for the levying and assessment/collection of national taxes?
A national law mandates a new environmental tax on all manufacturing businesses nationwide. Simultaneously, a local ordinance introduces a similar tax within a specific city. Which principle determines the validity and enforceability of the local ordinance?
A national law mandates a new environmental tax on all manufacturing businesses nationwide. Simultaneously, a local ordinance introduces a similar tax within a specific city. Which principle determines the validity and enforceability of the local ordinance?
A municipality is experiencing financial difficulties and seeks to increase its revenue. Which of the following actions would require prior authorization or delegation from the national government?
A municipality is experiencing financial difficulties and seeks to increase its revenue. Which of the following actions would require prior authorization or delegation from the national government?
A taxpayer is subject to both national and local taxes. Under what circumstance might they directly challenge the levying of a national tax in court?
A taxpayer is subject to both national and local taxes. Under what circumstance might they directly challenge the levying of a national tax in court?
Which of the following accurately distinguishes taxation from police power?
Which of the following accurately distinguishes taxation from police power?
The 'Life Blood Theory' is associated with which of the following concepts?
The 'Life Blood Theory' is associated with which of the following concepts?
What is a key difference between taxation and eminent domain regarding benefits received?
What is a key difference between taxation and eminent domain regarding benefits received?
Which of the following reflects the secondary purpose of taxation?
Which of the following reflects the secondary purpose of taxation?
Which of the following powers presupposes an equivalent tangible compensation for private rights interfered with?
Which of the following powers presupposes an equivalent tangible compensation for private rights interfered with?
How does the amount of exaction differ between taxation and police power?
How does the amount of exaction differ between taxation and police power?
Which government power is primarily aimed at promoting a healthy economic market?
Which government power is primarily aimed at promoting a healthy economic market?
What is the primary purpose of eminent domain?
What is the primary purpose of eminent domain?
Which power is legislative in nature and character?
Which power is legislative in nature and character?
What is the role of 'general welfare' in taxation?
What is the role of 'general welfare' in taxation?
Flashcards
Taxation
Taxation
Power of the State to raise revenue to fund government expenses.
Eminent Domain
Eminent Domain
Power of the State to acquire private property for public use with just compensation.
Police Power
Police Power
Power of the State to regulate liberty and property for public welfare.
Inherent Powers
Inherent Powers
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Similarities (Tax, ED, PP)
Similarities (Tax, ED, PP)
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Primary Purpose of Taxation
Primary Purpose of Taxation
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Secondary Purposes of Taxation
Secondary Purposes of Taxation
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Taxation & Compensation
Taxation & Compensation
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Legislative Nature of Taxation
Legislative Nature of Taxation
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Purpose of Police Power
Purpose of Police Power
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Purpose of Eminent Domain
Purpose of Eminent Domain
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Amount of Exaction in Taxation
Amount of Exaction in Taxation
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Amount of Exaction in Police Power
Amount of Exaction in Police Power
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Compensation in Eminent Domain
Compensation in Eminent Domain
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Benefits Received from Taxation
Benefits Received from Taxation
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Just Compensation
Just Compensation
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Non-impairment of Contracts
Non-impairment of Contracts
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Transfer of Property
Transfer of Property
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Scope of Application
Scope of Application
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Who Exercises Power?
Who Exercises Power?
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Necessity Theory (ED)
Necessity Theory (ED)
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Symbiotic Relationship Theory
Symbiotic Relationship Theory
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Contracts MAY be Impaired
Contracts MAY be Impaired
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Local Taxes
Local Taxes
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Local Tax Authority
Local Tax Authority
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Delegated Tax Power
Delegated Tax Power
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Local Tax Law Enactment
Local Tax Law Enactment
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Local Legislative Branch
Local Legislative Branch
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Local Ordinance
Local Ordinance
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Local tax levying
Local tax levying
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Local Tax Assessment/Collection
Local Tax Assessment/Collection
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Scope of Tax Power
Scope of Tax Power
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CUPS of Tax Power
CUPS of Tax Power
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Supreme Tax Power
Supreme Tax Power
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Unlimited Tax Power
Unlimited Tax Power
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Essential Elements of Tax
Essential Elements of Tax
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Enforced Contribution
Enforced Contribution
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Payable in Money
Payable in Money
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Proportionate Tax
Proportionate Tax
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Levied on...
Levied on...
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Tax Treasurer
Tax Treasurer
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Tax Payment Form
Tax Payment Form
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Tax Scope
Tax Scope
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Public Purpose (Tax)
Public Purpose (Tax)
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Regular Tax Intervals
Regular Tax Intervals
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Personal Tax Obligation
Personal Tax Obligation
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Fiscal Adequacy
Fiscal Adequacy
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Administrative Feasibility
Administrative Feasibility
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Theoretical Justice
Theoretical Justice
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Study Notes
- Fundamental principles of taxation involve taxation vs. eminent domain vs. police power.
Taxation
- Inherent power allows the sovereign, through its law-making body, to raise revenue.
- Revenue raised is used to defray government expenses.
- Taxation is an inherent power.
Inherent Powers of the State
- Promote public welfare by regulating liberty and property use.
- Raise revenue to cover government expenses.
- Acquire private property for public purposes, with just compensation.
Similarities Between Inherent Powers
- Inherent in the State and need not be in the Constitution.
- Indispensable for the state.
- Methods where the State interferes with private rights.
- Presuppose an equivalent compensation for interfered private rights.
- They are legislative in nature and character.
Purpose of Taxation
- Primary revenue/fiscal purpose raises revenues.
- Supports the state's existence.
- Promotes general welfare.
- Secondary purposes include regulation and promoting general welfare.
- Reduction of social inequity can be a secondary purpose.
- Encouragement of economic growth through taxation.
- Protectionism can be a secondary taxation purpose.
Differences Between Taxation, Police Power, and Eminent Domain
- Taxation aims to raise revenue, police power aims to promote public welfare, and eminent domain facilitates taking private property for public use.
- Taxation has no limit but must be equal to the needs of the government, police power is limited to the cost of regulation, and eminent domain involves just compensation that is of no specific amount.
- Taxation provides a general benefit of protection.
- Police power offers a healthy society, and eminent domain offers direct compensation.
- Taxation's contracts cannot be impaired, police power's contracts may be impaired, and eminent domain's may be impaired.
- Taxation transfers property rights and becomes part of public funds.
- Police power only brings restraint in its exercise, and eminent domain is transferred in favor of the State.
- Taxation affects all persons, property, and excises.
- Police power affects all persons, property, and privileges.
- Eminent domain affects a particular property.
- Taxation and police power are only by the government.
- Eminent domain can be the government or public service companies.
Theory and Basis of Taxation
- Life Blood Theory says taxes should be collected without unnecessary hindrance.
- Necessity Theory argues taxation pays for the government's existence.
- Symbiotic Relationship Theory describes taxation as "kaliwaan".
Scope of Legislative Power to Tax includes
- Purpose: public benefit
- Subjects: within jurisdiction
- Tax amount or rate.
- Tax kind to be collected.
- Who will collect the taxes
- Administrative and Judicial remedies.
- Tax exemptions and condonations.
Characteristics of Power to Tax
- Comprehensive, unlimited, plenary, and supreme (CUPS).
Essential Elements of Tax
- Enforced contribution, not voluntary.
- Generally payable in money.
- Proportionate in character.
- Levied/imposed on persons, property, or the exercise of a right or privilege.
- Levied by the law-making body of the State.
- Levied for public purpose.
Essential Characteristics of Tax
- Imposed by the State with jurisdiction.
- Levied by the Legislature.
- Enforced contribution.
- Generally payable in money.
- Proportionate in character.
- Levied on persons, property or excises.
- Levied for public purpose.
- Paid at regular periods of intervals.
- Personal to the taxpayer.
National Taxes vs. Local Taxes
- National taxes use inherent power, while local taxes use delegated power.
- Legislative in nature; national taxes are through Congress and the Senate.
- Local taxes are through local ordinances by the local legislative branch.
- Levying taxes on a national level is done by Congress.
- On a local level it is done by the legislative branch of the LGU.
- Assessment and collection nationally comes from the BIR & BOC.
- Assessment and collection locally comes from the Treasurer.
Principles of A Sound Tax System
- Fiscal Adequacy: sufficient to meet government needs.
- Administrative Feasibility: clear, concise, not obstructing business growth, convenient, and effectively enforced.
- Theoretical Justice: ability to pay.
Classification of Taxes
- Purpose: general fiscal or revenue, special/regulatory or sumptuary.
- Subject Matter: personal poll or capitation, property, excise or privilege.
- Incidence: direct, indirect.
- Amount: specific, ad valorem.
- Rate/Progression: progressive, regressive, proportionate.
- Authority imposing the Tax: national, local.
Principles of a Sound Tax System
- Non-observance of Theoretical Justice makes a Tax Measure unconstitutional.
- Non-observance of Fiscal Adequacy and Administrative Feasibility makes a Tax Measure unsound but not unconstitutional.
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Description
Explore fundamental taxation principles, comparing taxation with eminent domain and police power. Understand the state's inherent powers, their similarities, and the primary and secondary purposes of taxation, including revenue generation and welfare promotion.
