Log In Create Account

Philippine Bar review · Question

Practice question: Concept, Nature, Purpose, and Basis of Taxation

Multiple Choice Hard

Practice question

In the historical Lutz controversy, a levy supported stabilization of the sugar industry. A challenger said assistance to that industry necessarily lacked public character because sugar producers also benefited. The Court considered national employment, exports, wealth and foreign-exchange interests. Which principle follows?
  1. An industry-focused measure can serve genuine public welfare; incidental or sectoral private benefit does not alone negate that purpose
  2. Any private benefit necessarily invalidates every regulatory measure
  3. Only a measure covering every industry identically can have public purpose
  4. A producer benefit automatically proves a private personal-debt bailout
  5. Industry importance permits disregard of every constitutional limit

Legal references

  • Lutz v. Araneta, GRL-7859, December22 1955 MAIN: https://lawphil.net/judjuris/juri1955/dec1955/gr_l-7859_1955.html MAIN explanation of sugar-industry stabilization and police power.

Answer this question in flashcards to review your response and continue practicing.