SS121 ETHICS

LESSON 5

Taxation
Key Concepts
5.1 Meaning of Taxation
5.2 Philosophical View of Taxation

FIRST SEMESTER 2022-2023

DAVAO DEL NORTE STATE COLLEGE

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Lesson 5: Taxation

Learning Outcomes:

 Define taxation and its purpose.

 Develop a sense of patriotism, civic awareness and social responsibility
among young and adult learners.
 Integrate the importance of paying taxes towards nation-building.

Activity:
Among the following agencies that comprise the Philippine Government, which do you trust
the most and the least? Check the box representing the percentage of your trust.

Department 0-25% 26-50% 51-75% 76-100%

1. Department
of
Education
(DepEd)

2. Philippine
Health
Insurance
Corporation
(PhilHealth)

3. Department
of Finance

4. Department
of Health

5. Department
of Public
Works and
Highways
(DPWH)

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Analysis:
1. What is your criteria in choosing the department you trust the most? The least?
Elaborate.
2. To whom do you think that a Department/Agency secretary is answerable to? The
president of the government, or the people? Why?

Abstraction:

Meaning of Taxation
Fundamentally, the Government has three inherent powers namely; Power of Eminent
Domain, Police Power, and Power of Taxation. According to De Leon & De Leon (2012), it is the
inherent power of the State to demand forced contributions for public purpose or purposes.
Taxation is the act of laying a tax, i.e., the process or means by which the sovereign, through its
law-making body, raises income to defray the necessary expenses of government. It is merely a
way of apportioning the cost of government among those who in some measure are privileged to
enjoy its benefits and, therefore, must bear its burdens. It is imposed upon the people for the usage
and as support of the government. Additionally, it enables the government to discharge its
appropriate functions, especially its police power which ensures the safety of the general public.

Etymology of Tax
The word Tax finds its origin from the Latin word Taxare, meaning to censure, to charge,
or to compute.

What are Taxes for?

Primarily, the purpose of taxation is to provide the government funds or property
which will enable it to ensure the general welfare and protection of its citizens. Furthermore, it
can be used to achieve social and economic goals such as providing funds for infrastructures that
will serve the general public. It is also utilized to provide quality services in terms of healthcare,
and in ensuring that quality education is provided especially in public schools, colleges, and
universities which are managed by the State. The funds from taxes are also used in aid programs
for the poor, disaster response, modernization of the military, and other legitimate government
expenditures.

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Philosophical View of Taxation

Utilitarianism
In the previous lesson, it has been discussed that the primary aim of utilitarianism is to
achieve the greatest happiness for the greatest number of people. In this sense, taxation can be
seen as moral in a Utilitarian point of view if it ensures that quality goods and services will be
available to the general public and not only to a select few. Furthermore, the State should ensure
that resources coming from taxes should be redistributed widely enough for all or most people to
enjoy them. A large amount of people having modest resources generates more happiness
compared to the same amount of total resources being only concentrated in the hands of only a
few.

Objectives of taxation such as providing better or best public services in healthcare and
education will result to a greater amount of satisfaction to large number of people, thereby
achieving the utilitarian principle. Aside from that, programs aiding the poor as part of the
redistribution of taxes by the government will result to a greater number of happiness since
providing resources from the rich to the poor increases the number of happiness of the poor more
than it decreases the happiness of the rich.

Kantian Ethics/ Deontological Ethics

Deontological Ethics highlights the Categorical Imperatives as absolute moral duties. As a
citizen, it is a moral duty to support the State by paying taxes. Since the State guarantees its
citizens’ safety and security, paying taxes are the citizens’ contribution to ensure that the State can
continue to carry out its duty in the best way possible.

Kantian Ethics also emphasizes respect for every person, particularly supported by the
formula of humanity. As such, every human person has a moral obligation to look after one another,
especially the less fortunate. In this sense, paying taxes faithfully will help out in fulfilling this duty
to your fellow human being.

Virtue Ethics
In Virtue Ethics, the development of a virtuous character by habitually committing virtuous
acts is the key to achieving Eudaimonia. Hence, several virtues or values in relation to taxation can
be highlighted.

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 a. Justice
Taxation operates on the principle of justice, understood in the sense of justice as giving
what is due. If taxes are consistently, relatively moderate, people will be able to take a relatively
larger take-home pay.

b. Charity
People who have a larger take-home pay will more likely be able to afford charitable
donations, in time or in money. Hence, people will be able to participate in charitable acts easier
and more frequently.

c. Independence
It is better to earn money to provide for one’s needs, rather than to depend to others such
as relying on subsidies provided by the government. With just distribution of tax rates,
independence, particularly in terms of financial independence, will be easier to achieve.

Responsible attitude towards paying taxes is already a step in acquiring and developing
various virtues, thereby forming a virtuous character which leads to achieving happiness, as Virtue
Ethics teaches.

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References:
Ethics and Taxation. Sean Xavier O. Alquilita, M.Phil. Retrieved:
https://www.youtube.com/watch?v=JtW8NSe_5og

Brederode, R. (2020). Ethics and Taxation. Springer.

De Leon, Hector & De Leon, Hector Jr. (2012) The Fundamentals of Taxation. Rex Book
Store, Manila. (pp. 1-5)

De Leon, Hector & De Leon, Hector Jr. (2014) Textbook on the Philippine Constitution.. Rex
Book Store, Manila. (pp. 165-166))

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Application:
1. Do you think collecting taxes are moral? Explain your answer in the following viewpoints:

a. Utilitarian Ethics
b. Deontological Ethics
c. Virtue Ethics