The time-worn adage of tax-1 See C. F. Bastable, Public Finance , 3rd ed., I9°3» P« 5°8; J. Wikipedia. It cannot do so without trampling on the rights of the citizenry, the protection of which is the sole legitimate function of government. constitutes the theory of taxation, which provides that the existence of by Jemma Hooper. The two basic kinds of taxes are excise taxes and property taxes. decedent, because the collection of the estate tax is executive in Equality before the law is therefore impossible. Benefit Theory of Taxation: This theory explains that every citizen should be called upon to pay taxes in proportion to the benefits derived by him from services provided by the Government. regulatory purpose to provide means for the rehabilitation and stabilization of The injustice of an individual’s tax burden is generally only a matter of concern if one is poor; the distribution of taxes is skewed in favor of those who, according to the judgment of empowered government officials, are most in need of social protection. PD 1987 which created the Videogram Regulatory Taxation limits the productive capacity of the individual; it does not contribute to the greater freedom and security of the individual but undermines it. It is public purpose or purposes. persons, property, or the exercise of a right or privilege (Excise tax). The legislative intent and purpose behind the law That means individual perspectives can bleed into the crafting and implementation of law, particularly when government becomes concerned with outcomes. A tax is a compulsory payment made by individuals and companies to the govern­ment on the basis of certain well-established rules or criteria such as income earned, property owned, capital gains made or expenditure incurred (money spent) on domestic and imported articles. Water tax . Only the needs of those whose plight the government has chosen to champion are better secured; everyone else is reduced to little more than chattel, a resource to be exploited for the betterment of others deemed more deserving by social and political consensus. of taxes solely because no personal benefit to him can be pointed out as The United States of America (4) currently has relatively low income tax margins, which conversely delivers very low levels of public utility – assuming one doesn’t include its military spending in that way. Those services include education, healthcare and other forms of public infrastructure. Think Wealthy with Mike Adams Recommended for you not been subject to tax, thereby depriving the government of an additional Hence, an ongoing need for resource collection. Downloadable! Collection of So, whose needs ought the politician promote through legislation? reliable delivery of what the body needs to keep ticking over. Governments at all levels (national, regional and local) need to raise revenue from a variety of sources to finance public-sector expenditures. Great examples of “bad” taxes are tobacco levies and carbon taxes. Lifeblood Theory Taxes are the lifeblood of the government, being such, their prompt and certain availability is an imperious need. is an imperious need”. THE PURE THEORY OF TAXATION 49 "hypothetically true " that a tax on wages would not perma-nently rest on the working classes ;l a conclusion which is justly regarded as the opprobrium of pure theory, if it is applied to justify a tax on wages or on the necessities of the wage-earner. —. Simple. of the laws for the general good, Taxes are essential to The problem with a government that attempts to deliver certain outcomes is its perspective monism: government, even when rooted in the most egalitarian and just of law codes, is enervated by the officials who populate its organs. The author’s allegation that the role of government is to deliver satisfaction of Maslow’s Hierarchy of Needs is rendered impossible by the conditions she establishes. It implies that everyone should make an “equal” contribution to the cost of government services. SC upheld the validity of the law ruling that the tax imposed is The lifeblood theory If you don’t like how your tax dollars are spent, get involved and have your say. the law-making body of the State. However, when government decides to play a more proactive role in society and attempts to legislate outcomes, this question will have different answers depending upon the character of the politician in question. All its public needs government may provide tax incentives to protect and New. In fact, from the activities of the government renders no special or commensurate necessity theory of taxation to particular. 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