PRINCIPLES AND DOCTRINES ON TAXATION I.

PRINCIPLE OF NECESSITY The existence of the government is a necessity; the main source of revenue of th e government is taxes. These are the life-blood of the government. The primary p urpose of taxation is to generate funds for the State to finance the needs of th e citizenry and to advance the common wealth. The government chiefly relies on t axation to obtain the means to carry on its operation. II. TAXATION IS INHERENTLY LEGISLATIVE Along with police power ( for public good and welfare ) and eminent domain ( for public use ), taxation ( for revenue ) is an inherent power of the sovereignty. III. TAXATION INCLUDES THE POWER TO DESTROY The power of taxation is sometime also called the power to destroy. Therefore, i t should be exercised with caution to minimize injury to the proprietary rights of a taxpayer. It must be exercised fairly, equally and uniformly, lest the tax collector kills the hen that lays the golden egg. And, in order to maintain the genera l public s trust and confidence in the government, this power must be used justly an d not treacherously. IV. TAXATION IS FOR A PUBLIC PURPOSE The proceeds of the tax must be used a. for the support of the State or b. for s ome recognized objects of government or directly to promote the welfare of the c ommunity. V. TAXPAYER SUIT It is the remedy available to a taxpayer when taxes are used for illegal activit ies or when the public funds are used by the government for projects which are n ot intended for a public purpose.