Income Taxation Flashcards
The Inherent Powers of the State
Taxation power
Police power
Eminent domain
is the power of the State to enforce proportional contribution from its subjects to sustain itself
Taxation power
Is the general power of the state to enact laws to protect the well being of the people
Police power
Is the power of the State To take private property for public use after paying just compensation.
Eminent domain
May be defined as a state power, a legislative process and the mode of government cost distribution
Taxation
Taxation is an inherent power of the state to enforce a proportional contribution from its subjects for public purpose
As a state power
Taxation is a process of levying taxes by the legislature of the state to enforce proportional contributions from its subjects for public purpose
As a process
Taxation is a mode by which the state allocates its costs or burden to its subjects who are benefited by its spending.
As a mode of cost distribution
What is taxation
As a state power
As a process.
As a mode of cost distribution
What is the theory of taxation
The government’s necessity for funding.
The mutuality of support between the people in the government
Basis of Taxation
Theories of cost allocation
Benefit received Theory
Ability to pay theory.
Presupposes that the more benefit one receives from the government , the more taxes should pay
Benefit received theory
Taxpayers should be required to contribute based on their relative capacity to sacrifice for the support of the government.
Ability to pay theory.
Taxes are the life blood of the government
The life blood doctrine.