1.

Define Taxation as to:

Taxation refers to the practice of a government collecting money from its citizens to pay
for public services. Without taxation, there would be no public libraries or parks.

2. Theory of Taxation

The allocational theory of taxation, which analyzes the welfare losses caused

by distorting taxes, dates from the very beginning of public sector economics. It has, by
its very nature, always been part of the theory of the second best. ... Tax theory has
also become more tightly integrated with public expenditure theory.

3. Theories of cost allocation as to:

- Theories of Cost Allocation Taxation is a mode of allocating government costs or

burden to the people. In distributing the cost or burden, the government regards Benefit
Received and Ability to Pay Theories as general considerations in the exercise of its
taxation power.

4. Aspects ability to pay Theory

The ability-to-pay principle holds that those who have a greater ability to pay taxes—
measured by income and wealth—should pay more. ... Proponents of "ability to pay"
argue that a single dollar ultimately means less to a rich person than a wage earner, so
the rich should pay more to equalize their sacrifice.
5. 3 inherent powers of the state.

Police Power.

Eminent Domain.

Taxation.

Similarities:

1.They are inherent in the state and maybe exercise by it without need of express consti
tutional grant.

2. They are not only necessary but indespensable. the state cannot continueor effective 
unless it is able to exercise them.

3. They are methods by which the state interferes with private rights.

4. They all presuppose an equivalent compensation for tyhe private rightsinterfered with
.

5. They are exercise merely by legislature.