A law creating reservations for the Mangyan tribes and penalizing them for noncompliance was challenged as a deprivation of liberty without due process. Justice Malcolm responded defending the act as justified
according to general welfare and public interest.
Roxas & Co., v Court of Appeals (Procedural Due Process)
Petitioner’s property was undergoing compulsory acquisition according to CARP but there were several procedural problems, such as
problematic notification. The acquisition proceedings were deemed invalid and remanded to the DAR.
2. National Security
Lao Ichong v Hernandez
The retail industry was nationalized. Lao Ichong challenged the act. Equal protection refers to the same treatment across classes of people, not absolute equality. The dominance of the alien retailer poses as a threat to national security, as alien retailers hold a great deal of power, more than many Filipino retailers, but do not have the loyalty to the country and as such will not invest in industries that need supporting. The alien’s interest in the country is transient. It was reasonable. 3. Public Order
US v Pompeya
Mandatory patrol duty is a reasonable exercise of police power as it serves the public interest of preserves public order.
4. Public Safety Agustin v Edu
An act requiring early warning devices was questioned as not having gone through due process. The court ruled it had as the president had examined various studies and was a valid way of promoting public safety.
5. Public Health US v Gomez Jesus
The court can penalize those who practice medicine without proper licenses in the protection of public health.
6. Public Morals
Ermita-Malate Motel and Motel Operators Assn. V City Mayor Regulation: guests were required to fill out comprehensive information sheets. (allowed)
$#" Regulation: prohibited short time stays. (allowed)
Manila v Laguio
Ban: All motels, inns etc had to convert into more reputable establishments. (not allowed)
The preceding cases all involved the legislature trying to manage public morals, regulating motels which were often cites for prostitution etc. The motels however were not conclusively proved as always used illicitly. There were many legitimate purposes for motels, and thus the legislature could not simply remove them.
7. Public Welfare and advancement Buck v Bell
The sterilization of the mentally ill was not considered a deprivation of the right to life (although now, sterilization of the mentally ill is no longer enforced. Virginia repealed this law in the 1970s). It was
considered a legitimate use of police power for public welfare. The court said although they could not solve the whole problem, they could at least try to solve part of it.
8. The National Economy Rutter v Esteban
RA 342 allowed war veterans a certain amount of time before any debt could be collected. The court struck this down as unconstitutional as creditors would have to wait too long a time before they could collect and further cited that the Philippines was no longer struggling to recover from the war. It would be unreasonable and oppressive to creditors to make them wait that long when there was no longer any pressing cause. US v Toribio
Regulating the slaughter of carabaos is a valid exercise of police power and reasonably necessary to protect the community from the loss of the services of such animals, by their owners, tempted either by greed of monetary gain or to enjoy the luxury of animal food, despite damaging the productive power of the community.
C. Taxation Definition
• an inherent power of government
• Art. VI sec 28 of the constitution doesn’t give the government the power of taxation, rather it limits this otherwise almost unlimited power.
• It is given to the government with the primary purpose of raising revenue, in order to pay for debts and for the general welfare. Taxation as:
• Power to destroy – taxation used as an instrument for the extermination of undesirable activities.
• Power to keep alive – the foundation for the imposition of tariffs to protect locally produces goods against competition from imports. Limitations
• Must be used only for a public purpose
• Taxation is legislative in nature, although it can be delegated to the president. It is the only exception to the rule of non-delegability of legislative power
• Uniformity – pertains to the uniformity of taxation
• Equitability – related to the progressive system of taxation, in which the rate increases as the tax base increases.
Tax Exemptions
• Must be for a public purpose, uniform and equitable and in conformity with the equal protection clause.
o Examples: Sec 28(3) – Charitable institutions, churches … non-profit cemeteries and all lands, buildings … used exclusively for religious, charitable or educational purposes. Fiscal Powers of Congress:
• The power of the purse – Only congress can generate money from the government through taxation and the power to spend it.
• Before money can be paid out from the Treasury, the amount and the purpose must first be specified.
• After congress has made the appropriation, it is the executive that actually spends the fund.
Special Funds:
• Tax levied for a special purpose, to be used only for a specific and legitimate object of the government
• Any balance left after the purpose had been fulfilled or cancelled, will be returned to the general funds of the government.
Cases:
$$" • COMISSIONER v. BOTELHO SHIPPING CORP (1967)
Facts: two ships were sold by the government to private respondents. Registration of the vessels to the name of private respondent was stalled because of the non payment of compensation taxes. While the case was pending, the law requiring the payment of compensation taxes was repealed.
Issue: Whether or not the current law applies retroactively, thus exempting the respondent from paying the required tax.
Held: YES, There is no constitutional prohibition against granting tax exemptions to specific people so long as a denial of equal protection does not arise through unreasonable discrimination.
• LUTZ v. ARANETA (1955)
Facts: The constitutionality of a commonwealth act is being questioned. It is alleged that the act only benefits the sugar industry and not the public.
Held: A tax law is not purely for taxation or revenue generating purposes only; it can also be an exercise of police power. In this case, the tax was levied with the stabilization of the sugar industry in mind, which falls under the expansive definition of the “general welfare” phrase in the constitution.