Co-exists with the creation of government.
- It is an inherent power by which the sovereign state raises revenues for the use and support of the government.
- Taxation is the lifeblood of the government without it the nation will die.
- Taxation is government and government is taxation. Neither one can exist without the other. The success of one is the success of the other.
How is the power exercised?
*Legislative in function (enactment of tax laws)
- Purpose of the imposition
- Principles of sound taxation system
- Scope of the power of taxation
* Collection of the tax which is administrative in character.
Power of taxation:
- Co-exists with the creation of government.
- Life blood of its continued existence.
- Without such power, the government will die.
- Government and taxation had become one and the same.
- Neither one can exist without the other.
- The success of one is the success of the other.
- Exercised in a very democratic way.
- Taxpayers elect their representatives to the law making body of the government.
- Congress enacts tax laws.
- Sovereignty of the people, for the people, and by the people.
- Basically a legislative function.
- The delegated power is something formidable.
- Scope: comprehensive, plenary, unlimited, supreme (CPUS).
- Could be abused, principal check is their conscience of responsibility to their constituents.
- Subject to inherent and constitutional limitations.
Taxation is the act of laying a tax, i.e., the process or means by which the sovereign, through its lawmaking body, raises revenue to defray the necessary expenses of government.