GROUP2 BTAX1

HRDM2-7

JAY S. DESINGAÑO

1. Why taxation power is the most important inherent power of the state?
This power is exercised to raise revenues to defray the necessary expenses of the government.
It is sometimes regarded as the strongest among the three inherent powers of the government,
as taxes serve as its lifeblood. Taxation not only pays for public goods and services; it is also a
key ingredient in the social contract between citizens and the economy. How taxes are raised
and spent can determine a government's very legitimacy.

2. In the inherent power of the state. How important/s this power to its existence?
They are powers given to a branch of government, like the executive branch, to perform the
essential duties of government. They are not powers or rights that are available to private
citizens or corporations, but rather are purely used for the government to perform its duties and
function properly.
3. Why taxation power emanates from the legislatives?

The reason is that the legislature has the inherent power to determine who to tax, what to tax
and how much tax is to be imposed. Pursuant to the regulatory purpose of taxation, the
legislature may impose tax in order to discourage or prohibit things or enterprises inimical to the
public welfare.