Taxation

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Topics: Tax
TAXATION

* It is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. * Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. See also taxation principles. * Taxation refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is usually called "taxes." * Taxes - the enforced proportional contributions from persons and property, levied by the State by virtue of its sovereignty, for the support of government and for all public needs.

Three Powers of the State

The Fundamental Powers of the State
3 Powers of the State

1. Police Power - power of the State to regulate liberty and property for the promotion of the general welfare. 2. Power of Eminent Domain - enables the State to forcibly acquire private property, upon payment of just compensation, for some intended public use. 3. Power of Taxation - the State is able to demand from the members of society their proportionate share or contribution in the maintenance of the Government.

Similarities * They are inherent in the state and may be exercised by it without need of express constitutional grant * They are not only necessary but indispensable. The State cannot continue or be effective unless it is able to exercise them. * They are methods by which the State interferes with private rights. * They all presuppose an equivalent compensation for the private rights interfered with. * They are exercised primarily by the legislature.

Differences

* Police Power 1. Regulates both property and liberty 2. May be

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