Chapter 1: Fundamental Principles

Question 1

The process or means by which the sovereign, through its law making body, imposes burdens upon subjects & objects within its jurisdiction for the purpose of raising revenue to carry out the legitimate objects of government

Answer 1

Taxation

Question 2

Independent state

Answer 2

Sovereign

Question 3

Law making body

Answer 3

Legislature

Question 4

Act of levying a tax to apportion the cost of government among those who, in some measure, are privileged to enjoy its benefits and must therefore bear its burden

Answer 4

Taxation

Question 5

A power inherent in every sovereign state being essential to the existence of every government

Answer 5

Taxation

Question 6

Any constitutional provision regarding the state’s power to tax should not be interpreted as a “___________” but merely a limitation to the state’s power to tax

Answer 6

Grant of power

Question 7

The 3 Inherent Power of the State

Answer 7

• Police Power
• Power of Taxation
• Power of Eminent Domain

Question 8

It is the fair market value that a federal or local government must pay in order to seize that private property for public use

Answer 8

Just Compensation

Question 9

Promotion of general welfare through regulation

Answer 9

Police Power

Question 10

What happened to the property taken in the exercise of the police power?

Answer 10

Destroyed, since this property is noxious or intended for a noxious purpose.

Question 11

It is the power by which the State raises revenue to defray the necessary expenses of the government

Answer 11

Power of Taxation

Question 12

The taking of private property for public use/purpose with just compensation

Answer 12

Power of Eminent Domain

Question 13

Primary Purpose of Taxation

Answer 13

Revenue or Fiscal Purpose

Question 14

Secondary Purpose of Taxation

Answer 14

Regulatory Purpose or Sumptuary / Conpensatory

Question 15

Taxes imposed for raising revenues are income and business taxes are example of what purpose of taxation?

Answer 15

Primary purpose or Revenue or Fiscal Purpose

Question 16

It is often employed as a devise for regulation or control (implementation of State’s Police Power) by means of which certain effects or conditions envisioned by the government may be achieved such as:

Promotion of General Welfare
Reduction of Social Inequality
Economic Growth

Answer 16

Secondary Purpose or Regulatory Purpose (Sumptuary / Compensatory)

Question 17

Theory of Taxation

Answer 17

Life Blood Theory & Necessity Theory