Constitution
Lesson 2A
Power to Tax
A. Article I Sec. 8
- “lay and collect taxes, duties, imposts, & excises for general
welfare of the U.S.”
1 Articles of Confederation – did not give the power to tax.
1.
tax
- govt. failed – could not pay the debt.
2. Govt. takes in trillions/yr.
3. tax – charge levied by govt. on persons or property to
meet the public needs
- also protective tariffs.
4. Limited
- ex. cannot tax churches
a) only to pay debts & provide for defense & welfare of the U.S.
b) no tax on exports
c) must be apportioned among states according to pop.
d)) all indirect taxes must be levied @ the same rate.
(1) direct tax – paid by the person on whom it is imposed.
-- property owner, etc.
(2) indirect tax – paid by one person, passed on to another.
- ex. cigarettes, gas, etc.
Power to Borrow
A. Credit
1. Congress can borrow money on the credit of the U.S.
- no limit on the amount they can borrow.
2. Is a limit on the total debt.
- Congress can raise it when necessary. (meaningless)
3. No surplus from 1968 – 1999.
- U.S. owes over 14 trillion dollars. ((2011))
Commerce Power
A. Commerce Power – can regulate interstate & foreign trade.
1. vital to the welfare of the nation.
2. Articles could not do this – states fought.
g
- 1824
B. Gibbons vs. Ogden
1. Ships in NY rivers – state gave power to Robert Fulton
- commerce – traffic – movement of goods.
- states cannot regulate commerce – only U.S. govt.
2. Lots of steamboat companies started up.
3. Railroads did the same.
C. Very Powerful
1. Civil Rights
g Act of 1964
- cannot discriminate in public places.
2. Most of what Congress does falls under this power.
D Limits
D.
1.
2.
3
3.
4.
5.
Cannot discriminate.
No export tax.
No
N ffavoring
i off one state
t t over another.
th
Cannot force vessels passing through a state to pay duties.
“Slave Trade Compromise” – now obsolete.