Principles of Taxation

A set of flashcards covering key vocabulary related to the principles of taxation.

Inherent Powers of the State

Powers existing as a natural or basic part of every sovereign state, not conferred by the people or the Constitution.

Power to Tax

The act of levying or imposing a tax to raise income for government expenses.

Police Power

The power of the State to enact laws promoting public health, morals, safety, and general welfare.

Eminent Domain

The power of the State to take private property for public use with just compensation.

Necessity Theory

The theory that taxation is essential for the existence of government; the government needs funds to function.

Lifeblood Doctrine

The concept that taxes are essential for government function and survival.

Tax Exemption

A legal allowance that frees certain individuals or organizations from tax obligations.

Double Taxation

The imposition of multiple taxes on the same income, asset, or financial transaction.

Tax Avoidance

The legal exploitation of the tax framework to minimize tax liabilities.

Tax Evasion

The illegal act of not paying taxes owed by concealing income or inflating deductions.

Territoriality of Taxation

The principle that a state's taxing rights are restricted to its own territory and within its jurisdiction.

Equitable Recoupment

The principle allowing taxpayers to use a claim for a tax refund as a set-off against a tax liability.