Constitutional Principles of Taxation: A Comprehensive Analysis

Constitutional Principles of Taxation

A) Measurement Principle: Economic Capacity

The measurement principle of economic capacity establishes that the contribution of citizens should attend to their economic capacity, thereby establishing a principle of equal treatment in matters of tax implementation. The legislative power to tax can never be without regard to economic ability. This measurement principle imposes taxes based on the pursuit of wealth.

B) Measurement Principle: Material Equality

The measurement principle of material equality aims to promote the eradication of inequality from the fiscal perspective.

C) Measurement Principle: Generality

Equality must be promoted for all, sustained under the criteria of sovereignty and territoriality. This measurement principle sometimes breaks down, and even when giving full circumstances of the legislature, the enforceability is not there. This is called "exemptions". The exemption does not fit individual attention. The legislature also raises generality and equality in terms of escalation, i.e., a much higher tax burden on economic capacity. It is important to differentiate between proportionality and progressivity, as they are not compatible; if there is progressivity, there is no proportionality.

D) Measurement Principle: Legality

The source of financial law is only the law, i.e., it comes only from the legislative power. This regulates the measurement principle of reserve law. This measurement principle was born to establish the separation of powers after the imposition of the church to pay taxes under the slogan "no taxation without representation."

E) Measurement Principle: Legal Security

The measurement principle of legal security is a computer of social life. Legal security is violated when you act at your own convenience. There will be legal security when there is public confidence in standards. As a result, the rules must meet the following conditions:

• Be accessible in its content: This means that they are sufficient in number, stable over time, clear, and logical in their expression.
• Be adequate in its form: Regarding the constitutional limitations when amending.
• Be correct in your application: The correct application of standards will exist when there is no arbitrariness or discretion.
• Be judicially protected for its effectiveness: Judicial protection exists when there is maximum security in policy implementation. For judicial protection to exist, there must be: judicial independence of judges in interpreting the standard, few costs in proceedings, no contradiction in the resolutions, and respect for the final decision.

F) Prohibition of Arbitrary Acts

Acts that are not motivated go against this measurement principle.