Power of Taxation
The power of taxation is normally defined in at least three (3) ways – as a power itself, as a means, or as a process – as follows:
As a power, it refers to the inherent power of the State to impose proportionate burden from among the citizenry for the respective share in the cost of running the government and the delivery of its constitutional mandate to serve and protect.
As a means, it refers to one of the few ways by which the State raises revenue to support its existence and operations. Other ways to raise revenue could be by foreign financing (e.g. foreign loans from World Bank, Asian Development Bank, etc.) or by domestic financing (e.g. issuing bonds and other evidences of indebtedness to the public) and such other means.
As a process, it refers to the method of imposing a tax to raise revenue by the legislative act of the Congress in passing a law or ordinance. Implementation and enforcement of such laws belongs to the Executive Department, interpretation is for the Judiciary and compliance rests upon the taxpayers involved, except upon the hammers of the law against erring taxpayers.
