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UNDERGROUND CASE DIGESTS
Lutz v. Araneta
alike constitutionally valid, no reason is seen why the state may not
levy taxes to raise funds for their prosecution and attainment. Taxation
may be made the implement of the states police power.
FACTS
Due to the threat to the sugar industry (it lost its preferential position in
the US market), CA No 567 (Sugar Adjustment Act) was enacted. It
provides for an increase of the existing tax on the manufacture of sugar
(Sec 2 of the Act) and levies on owners or persons in control of lands
devoted to the cultivation of sugar cane and ceded to others for a
consideration, on lease or otherwise (Sec 3).
ISSUE
Whether or not the tax paid by virtue of the Sugar Adjustment Act is
unconstitutional.
HELD
NO. The tax provided for in the Act is not a pure exercise of taxing
power. The tax is levied for a regulatory purpose, to provide means for
the rehabilitation and stabilization of the threatened sugar industry. In
other words, the act is primarily an exercise of the police power.
The sugar industry is one of the countrys primary sources of wealth. Its
promotion, protection and advancement redound greatly to the general
welfare. It was competent for the legislature to find that the general
welfare demanded that the sugar industry should be stabilized in
return.
Since the promotion and protection of the sugar industry is a matter of
public concern, the Legislature may determine within reasonable
bounds what is necessary for its protection and expedient for its
promotion. Here, the legislative discretion must be allowed full play,
subject only to the test of reasonableness. If objective and methods are
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TAYAG
| ALBERTO ATILLO
CHUA GUERRERO DELA ROSA MIRANDA REVOTE REYES SALVADOR SUAREZ SULIT
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TAYAG
| ALBERTO ATILLO
CHUA GUERRERO DELA ROSA MIRANDA REVOTE REYES SALVADOR SUAREZ SULIT