Answer to Question #271327 in Accounting for Another you

Question

1. What are the nature of the state's power to tax?

Answer 1

Solution:

Taxation is a comprehensive, plenary, unlimited, and supreme power. This authority, however, is subject to inherent and constitutional constraints.

The nature of the state’s power to tax is as follows:

1. It is inherent in sovereignty – the ability to tax exists independently of any legislation. There is no need to enact a law to exercise that power because it exists from the moment the state exists. Because it is based on necessity, this is inherent. Taxation is the government's lifeblood.

 

2. It is legislative in nature - but in the exercise of that power, that power is delegated to the legislative body. It is not delegated to either the judiciary or the executive branch of government. It has been delegated to Congress, the legislative body.

 

3. It is subject to constitutional and inherent limitations – Congress will abuse this power to some extent. To some extent, you have the principle that the power to tax entails the power to destroy. Congress has the potential to abuse the authority bestowed upon it by the people through the electoral process.