2: General Principles of Taxation

Taxation

Is a mode by which governments make exactions for revenue in order to support their existence and carry out their legitimate objectives.

Taxation (Power)

Think of taxation as the "ability" or "right" of the government to collect money from the people.

Tax (Money)

It's the "result" or "product" of the government's power of taxation.

Inherent in sovereignty

It exists apart from constitutions and without being expressly conferred by the people.

Natural Authority

Just by existing as an independent and self-governing entity, a government naturally has the authority to collect taxes from its people.

No Need for Approval

This power to tax does not require any special approval or permission from the people or any other authority. It's an automatic right that comes with being a sovereign government.

Constitution or Laws Set Limits

While the government inherently has the power to tax, the Constitution or laws may limit or regulate how this power is used. These rules ensure that taxation is done fairly, justly, and in a way that respects citizens' rights.

Essentially a legislative function

The power to tax is peculiarly and exclusively legislative and cannot be exercised by the executive or judicial branch of the government.

Legislative Function

responsible for making laws

No Executive or Judicial Role

The executive branch (like the President or government agencies) and the judicial branch (the courts) cannot create or impose taxes. They can only enforce or interpret the laws made by the legislative branch.

Subject to constitutional and inherent limitations

These limitations are those provided in the fundamental law or implied therefrom, while the rest spring from the nature of the taxing power itself although they may or may not be provided in the Constitution.

Chief Justice John Marshall

“The power to tax involves the power to destroy."