Lalaine Mae Lizada Balmes September 19, 2021

201812779 BGMT 28A

Reflection Paper

To begin with, the aspects underlying on taxation is something that I am not

familiar with, and I consider myself not knowledgeable enough, since I am only familiar
with the basic of it. The amount the taxpayers or the employees pay is what we call
income tax and the burden that transfer indirectly to the buyer of the product is also called
tax. That is the only thing I know, therefore, I find this subject interesting given that it will
help us when we already have a job few years from now.
With our meeting last Friday, it discusses the importance of paying taxes timely
and the benefits that we are going to get with the taxpayers’ tax like for example, the
public transportation system, roadways and even the free tuition that we obtain for our
education.
In addition, as stated to the discussion, the state have three (3) inherent powers:
(1) The police power- which is very important to ensure the safety of the people.
(2) The power of eminent domain- which the state has the power to acquire
private property from private owner upon payment with just compensation and the
intention is for public use (e.g. public hospital, schools, road widening, etc.).
(3) The power of taxation- which the money contributed by the people will serve
as the budget of the government for the project.
I also discover that there are underlying theories in taxation. It says that taxes are
like human blood because without the taxes, the government would be paralyze and
cannot operate and that is why taxation is life-blood theory. Taxes is consider as necessity
underlying to the necessity theory because the government needed taxes to continue to
exist. The government itself is the one who are responsible to handle and give the benefits
to the people but in order to continue, the people needed to contribute. When it comes to
the symbiotic relationship and the benefits protection theory, it says that the people and
government have the same obligation to carry. The people are obligated to contribute to
the government and the government have the obligation to give the benefits to the people.
(e.g. PhilHealth, Pag-IBIG and etc.). And I want to add, as indicated in the discussion that
the nature of the taxation is civil which means if Person A are not able to pay his tax on
time you are not consider as criminal but it mentioned that there is a penalties.
There is what we call scope in taxation and it says that it is inherent in sovereignty
and legislative, meaning it is natural for a state to collect tax from people, provided by the
law because as mentioned you cannot enforce the tax without the law. And I want to add
as part of the case we choose which is the two (2) purpose of taxation.
(1) Revenue or Fiscal- which means that in order to raise revenue for the
government to execute the project or program, the people need to pay taxes.
(2) Non-revenue or Regulatory-it is for the purpose of regulation or to controlling
that is why government imposed paying taxes. Best example for this one is the cigarettes,
they impose excise tax to regulate the use of it.
In conclusion, tax is consider pala as a person’s obligation. A compulsory
contribution that will be very important in order for a state to effectively function or operate.
They say that tax is truly a person’s burden given the amount that they needed to pay.
However, I realized that yes it is a huge burden, but in return people will also benefit from
it. The collected money will be use to satisfy the people want, for the public purpose. (e.g.
health, education, infrastructure, etc.).