GETHICS REVIEW NOTES

I- UTILITARIANISM
 The focus of utilitarianism, unlike other ethical theories is the outcome of one’s actions.
 Act Utilitarianism
o A utilitarian principle which highlights that an action is moral if it would yield the greatest good
for the greatest number of people – promoting the greatest amount of pleasure (minus painful)
consequences of an action for the greatest number of people.
o Characteristic of Bentham’s utilitarian Ethics.
 Rule Utilitarianism
o A utilitarian principle which highlights that a rule which guides an action is something worth
including in our moral codes if this rule will guide an action and would eventually yield the
greatest good for the greatest number of people – promoting the greatest amount of pleasure
(minus painful) consequences of an action for the greatest number of people.
o people should judge the morality of individual actions by reference to general moral rules
which guides actions that would produce more well-being than other possible rules
 Jeremy Bentham
o More quantitative in orientation
o Components of Bentham’s Felicific Calculus
 Intensity – How strong is the pleasurable consequence? How valuable is the pleasure?
 Duration – How long will the pleasurable consequence last?
 Certainty – How certain or sure that a pleasurable consequence would occur?
 Propinquity – How near or close a pleasurable consequence would occur?
 Fecundity – How likely will pleasurable consequences would multiply to even more
pleasurable consequences?
 Purity – How an action would lead to purely pleasurable consequences rather than
painful ones?
 Extent – How many people are bound to be affected by the act and its pleasurable
consequences?
 John Stuart Mill
o More Qualitative in orientation
o Bentham’s theory is amorality of pigs: “better to be a Socrates dissatisfied rather than a fool
satisfied.” This is because Bentham’s theory does not differentiate higher and lower pleasures
o A person should depend on rules of thumb derived from the principle of utility

II- JOHN RAWLS THEORY OF JUSTICE

 Remember, for Rawls, any inequality in society must be addressed in such a way that it benefits the
least-advantaged members of that society.
 Veil of Ignorance – the tool that Rawls proposed in his philosophy in which you do not allow the
origins and background of an individual to influence how you distribute goods to others.
 Basic Liberties, according to Rawls are those liberties which are more fundamental as compared to
other liberties. The following are certain basic liberties according to Rawls
o Liberty of thought and conscience
o Political liberties (rights of participation)
o Liberty of association
o Liberty and integrity of the person (including freedom of occupation and choice of careers and
a right to personal property)
 Fair Equality of Opportunity
o Everyone should be given the same fair opportunity for a job or any gov’t position regardless
of age, sex, race, etc.; and only based on their adherence to certain basic societal
requirements.
 Power of Eminent Domain
o Giving just compensation for whatever property that an individual possesses.
  Business Income Tax
o A kind of tax earned from a business.
 Lifeblood Doctrine
o Taxes are important since without these, projects that are meant to improve the quality of life
of people would not be possible.
 Rights and liberties associated with the rule of law
 The second principle under the difference principle is applied to institutions.
 Proportional expenditure is more profitable than income tax because It is more efficient and treats
everyone in a uniform way
 In addition, according to Rawls, tax discourages workers because of income effects

OTHER THINGS TO CONSIDER IN RELATION TO JOHN RAWLS AND TAXATION

 Equality in taxation means that tax laws as well as their implementation must be fair, just, reasonable and
proportionate to one’s ability to pay. Furthermore, the end goal of taxation is all about the pursuit of economic
justice along with universal healthcare and free education.

 The ability-to-pay principle gives emphasis on the “fair share” principle that every citizen should contribute in
running the affairs of the State. But tax laws in the Philippines DO NOT COVER only national taxes like Value
Added Tax to the exclusion of local taxes.

 Tax laws in the Philippines DON’T ONLY COVER local taxes like the payment of cedula. But progressive system
of taxation gives emphasis on the ability-to-pay principle of taxation.

 Philippine Congress as per 1987 Constitution shall adopt a progressive system of taxation. Philippine Tax laws
covers both national taxes and local taxes.

 The payment of taxes based on the “fair share” principle should be decided by the difference principle and
other requirements of distributive justice where people who are similarly situated are uniformly,
proportionately, and reasonably taxed based on their ability to pay. The lifeblood doctrine of taxation provides
that the existence of the government is a necessity and the government cannot continue without means to pay
its expenses as such the government has the right to compel its citizens and property within its limits to
contribution.

 The basis of taxation is found in the reciprocal duties of protection and support between the State and its
inhabitants. Under the benefits received principle, in return of the taxpayer’s contribution, the taxpayer
receives benefits and protection from the State.

 Under the benefits received principle, the taxpayer cannot question the validity of the tax law on the ground
that payment of such tax will render the taxpayer impoverished, or lessen the taxpayer’s financial or social
standing because the obligation to pay taxes is involuntary and compulsory, in exchange for the protection and
benefits the taxpayer receives from the government. On the other hand, under the doctrine of symbiotic
relationship, despite the natural reluctance to surrender part of one’s hard earned income to taxing authorities,
every person who is able must contribute his fair share in the burden of running the government, and in return
the government is expected to respond in the form of tangible and intangible benefits intended to improve the
lives of the people and enhance their material and moral values.

 The power of taxation is an inherent power of the sovereign State. In addition to the power of taxation, the
other two (2) inherent powers of the sovereign State is the power of eminent domain and police power.

 Power of taxation is the power to enforce contributions to support the government, and the other inherent
powers of the State. Power of eminent domain is the inherent power of the State to take property with just
compensation for public use.
 The primary requisite of the equity principle in taxation is that a progressive tax rate shall be applied equally to
all persons, firms, corporations, and transactions placed in similar classifications and situations. On the other
hand, National taxes refer to those taxes imposed and collected by the national government through the
Bureau of Internal Revenue (BIR) while local taxes refer to those imposed and collected by local government
units prescribed by the Local Government Code.