Nature of the power of taxation.

(1) It’s inherent in sovereignty. – The power of taxation is inherent in sovereignty as an incident or attribute thereof, being essential to the existence of every government. It exists apart from constitutions and without being expressly conferred by the people. Hence, it can be exercised by the government even if the Constitution is entirely silent on the subject.

(a) Constitutional provisions relating to the power of taxation do not operate as grants of the power to the government. They merely constitute limitations upon a power which would otherwise be practically without limit.

(b) While the power to tax is not expressly provided for in our Constitution, its existence is recognized by the provisions relating taxation.

(2) It is legislative in character. – The power to tax is peculiarly and exclusively legislative and cannot be exercised by the executive or judicial branch of the government. Hence, only Congress, our national legislative body can impose taxes. The levy of a tax, however, may also be made by a local legislative body subject to such limitations as may be provided by law.

(3) It is subject to constitutional and inherent limitations. – The power of taxation is subject to certain limitations. Most of these limitations are specifically provided in the Constitution or implied therefrom, while the rest are inherent and they are those which spring from the nature of the taxing power itself although they may or may not be provided in the Constitution.

Individual equities or inequities, however, are not considered in the exercise of the power; and, therefore, the mere fact that the taxation is unjust or oppressive with respect to a particular taxpayer does not of itself render a tax law invalid, where no constitutional provision has been violated.

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