TAXATTO!{ A.S.

TATIIAYO

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TEUE OR FAT SE: Wrile word True if the statement is conect and the word False if the statement is incorrect When your
an$^/e!'is False, underline Hre word rr phrase that makes the statement incorrect.

1. {e&fig8}s the act of laying a tax, i"e. the process or rneans by whicfr the sovereign, through iE lawmaking body,
raises inco4letedefi"y tte necessar) expensei of govemment.
\ 2. Power of timinent agrygrg} the grcwer of the State or those to whom the power has been dehgated to take private
prqpe$Afo(publie use upon paying the owners a just compnsation to be ascertainetj acmrding to law.
T 3.(Elice powglis tfe power of the State to enact such laws in relatiorr to persons and propefi as may promote
pmicT-6ffi, public morals, public safe{y and general welfare of the people
--' 4. For police power the arnount imposed depelds on whether the adivlty is useful or not.
-r s. Power of eminent domain may not raise rnoney far the govemment.
T- 6. In Flice Power of the State, the petson who is parting with his money or propert/ is presumed to receive a
-F.,rr\l[L ircnefrt.
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I Equality in taxation means, *Taxes must be based on the taxpayer'stQ&y.je pay".
t_ B. Under fiscal adeguacy, a basic principle of a sound tax sry*em, the govenrment shOuld not incur a deftcit.
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{' 1 *dryinisfativg.lp6;bdiq6-a basic principle of a sound iax s.vstem, is met when C.ongress
evolyes a progressive
systGffi'OTE-xation as mandated in ffre Congitution.
-i- 10. To be exercised to prornote public welfure, is not a ba ic princip{e of a sound
taxation system.
,rtl -r LL. Based on $e a&lg_b_5lay is not a charccteristigrcrf tJre Statek power to tax.
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1' 12. The power of taxation is inherent in sovereignty k:ing essential to the existenrn of every govemrnent. Hence. even
if not mentioned in the C.onstitutiorr, the State can stiil exercisa the power.
13. Taxation is essentially a legislative furrtion. Even in ihe absence of any constihrtional provision, taxation power
falls on Congress as part of the general power of lawmaking,
*, t4. Taxes may be imposed to raise revenue or to provide incenoves for certain activities wittrin the State.
-i- 15. For the exercise of the power of taxation, die state can tax anything at any time.
r t6. The provisions of taxatir:n in the Pli.lipSng ftn${tution are grants of power aRd,not limitatficns on the taxing
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Powetr
,.* L7. A tax reform at any given
ijme underscore; the filct that taxotion rs <! power that is very broad.
T 18. Taxes are the lifeblood of the Go'*ei'nmenl and therr pn:rnpt and certain avaitability are imperious (expecting
obedience) need.
-( 19. The pourer of taxatbfl proceds up<m the theory Urat ttre existence of the government is a necessity, that it cannot
continue without means to pay its expenses anrj that far Sris nreans it has a right to compel all its citizens and
property within its limits to conti.ibute.
),^o^. T Zg. The basis of taxation is the reciprocal duues of pnrtation anC support bebreen the State and its inhabitanb.
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7 21. To implement the police power of the State to proffiote the general welfare is a ompengahry purpose of taxation.
'a 22. The principal (prirnary) purpose of taration is to raise reverlue for govemmental needs.
o 23. The power of taxation is ccmprehensive, ple:ary, unlimited and supreme and, therefore, not subject to inherent
and onstitutional limitations.
kq1'*r{t\' fZ+. tevVing or imposiUon of taxjg,pssentially.arjrninist,at[vs in character.
, 25. Power of eminent domain niay be exercised by pubiic service ccmprnies and public utili6es.

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