THE THEORY THAT THE EXISTENCE OF GOVERNMENT IS A NECESSITY
2. 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 TAX PAYER RECEIVES THE GENERAL ADVANTAGES AND PROTECTION WHICH THE GOVERNMENT AFFORDS THE TAX PAY THE TAX PAYER AND HIS PROPERTY. THIS IS THE SO-CALLED BENEFITS RECEIVED PRINCIPLE. THE FORGOING STATEMENTS, HOWEVER, MUST BE QUALIFIED
a. IT DOES NOT MEAN THAT ONLY THOSE WHO
ARE ABLE TO AND DO PAY TAXES CAN ENJOY THE PRIVILEGES AND PROTECTION GIVEN TO A CITIZEN BY THE GOVERNMENT. b. FROM THE CONTRIBUTION RECEIVED, THE GOVERNMENT RENDERS NO SPECIAL OR COMMENSURATE BENEFITS TO ANY PARTICULAR PROPERTY OR PERSON. c. THE ONLY BENEFIT TO WHICH THE TAX PAYER IS ENTITLED IS THAT DERIVED FROM HIS ENJOYMENT OF THE PRIVILEGES OF LIVING IN AN ORGANIZED SOCIETY ESTABLISHED AND SAFEGUARDED BY THE DEVOTION OF TAXES OF PUBLIC PURPOSES. NATURE OF THE POWER OF TAXATION 1. IT IS INHERENT IN SOVEREIGNTY. THE POWER OF TAXATION IS INHERENT IN SOVEREIGNTY AS AN INCIDENT OR ATTRIBUTE THEREOF, BEING ESSENTIAL TO THE EXISTENCE OF EVERY GOVERNMENT. (a) CONSTITUTIONAL PROVISION RELATING TO THE POWER OF TAXATION DO NOT OPERATE AS GRANTS OF POWER TO THE GOVERNMENT. (b) WHILE THE POWER TO TAX IS NOT EXPRESSLY PROVIDED FOR IN OUR CONSTITUTION, IT EXISTENCE IS RECOGNIZED BY THE PROVISIONS RELATING TO TAXATION. 2. IT IS LEGISLATIVE IN CHARACTER. THE POWER OF TAX IS PECULIARLY AND EXCLUSIVELY LEGISLATIVE AND CANNOT BE EXERCISED BY THE EXECUTIVE OR JUDICIAL BRANCH OF THE GOVERNMENT. 3. IT IS SUBJECT TO CONSTITUTIONAL AND INHERENT LIMITATIONS. THE POWER OF TAXATION IS SUBJECT TO CERTAIN LIMITATIONS. ASPECTS OF TAXATION 1. LEVYING OR IMPOSITION OF THE TAX WHICH IS A LEGISLATIVE ACT.
2. COLLECTION OF THE TAX LEVIED WHICH IS
ESSENTIALLY ADMINISTRATIVE IN CHARACTER. EXTENT OF THE LEGISLATIVE POWER TO TAX 1. THE SUBJECTS OR OBJECTS TO BE TAXED. THESE REFER TO COVERAGE AND THE KIND OR NATURE OF TAX. 2. THE PURPOSE OR OBJECT OF THE TAX SO LONG AS IT IS A PUBLIC PURPOSE. THE LEGISLATIVE BODY CAN LEVY A TAX OR MAKE AN APPROPRIATION PROVIDED IT IS FOR A PUBLIC PURPOSE. JUDICIAL ACTION IS LIMITED ONLY TO A REVIEW WHERE IT INVOLVES: (a) THE DETERMINATION OF THE VALIDITY OF THE TAX IN RELATION TO CONSTITUTIONAL PRECEPTS OR PROVISIONS. (b) THE DETERMINATION IN AN APPROPRIATE CASE OF THE APPLICATIONS OF TAX LAW. 3. THE AMOUNT OR RATE OF THE TAX. AS A GENERAL RULE, THE LEGISLATURE MAY LEVY A TAX OF ANY AMOUNT OR RATE IT SEES FIT.
4. THE MANNER, MEANS, AND AGENCIES OF
COLLECTION OF THE TAX. THESE REFER TO THE ADMINISTRATION OF TAX OR THE IMPLEMENTATION OF TAX LAWS. NON-REVENUE OBJECTIVES OF TAX