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General Welfare Clause and the 10 th Amendment

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Page 1: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

General Welfare Clause and the

10th Amendment

Page 2: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

• Many Americans believe the Sixteenth Amendment, the so-called income tax Amendment, is the constitutional provision that allows the federal government to impose taxes on the people of the several States.

Page 3: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

This is not the case. The Sixteenth Amendment has nothing to do with the federal government's power to impose taxes. In fact, every federal tax, including income and social security taxes, originate from Article I, Section 8, Clause 1 of the Constitution.

Page 4: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The “general welfare” clause is mentioned

twice in the U.S. Constitution: first, in the preamble and second, it

is found in Article 1, Section 8.

Page 5: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The preamble clearly defines the two major functions of government: (1) ensuring justice, personal freedom, and a

free society where individuals are protected from domestic lawbreakers and criminals, and;

(2) protecting the people of the United States from foreign aggressors.

Page 6: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Article 1, Section 8 of the Constitution refers to the “general welfare” thus: “The Congress shall have the Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common defense and general welfare of the United States. . .”

Page 7: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Congress can only impose taxes for three purposes.

•First, to "pay the debts... of the United States."

Page 8: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

•Second, to "provide for the common Defense... of the United States."

Page 9: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

•Third, to "provide for the general welfare of the United States."

This provision, which was intended to limit the ability of Congress to tax and spend, has been radically expanded, with the help of the federal judiciary, and is now the constitutional basis for the myriad of federal spending programs that consume the bulk of the taxes extracted from the American people every year.

Page 10: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

It should be noted that if the federal

government was not usurping power

through this clause and spending money like drunken sailors,

there would be no need for a federal income

tax.

Page 11: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

According to James Madison, the clause authorized Congress to spend money, but only to carry out the powers and duties specifically enumerated in the subsequent clauses of Article I, Section 8, and elsewhere in the Constitution, not to meet the seemingly infinite needs of the general welfare.

Page 12: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Alexander Hamilton maintained that the clause granted Congress the power to spend without limitation for the general welfare of the nation.

The winner of this debate was not declared for 150

years.

Page 13: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The Supreme court in 1936 adopted Hamilton's interpretation of the

General Welfare Clause, which gave Congress broad powers to spend

federal money. It also established that determination of the general welfare

would be left to the discretion of Congress.

Page 14: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

When the Founding Fathers said that “WE THE PEOPLE” established the Constitution

to “promote the general Welfare,” they did not mean the federal government

would have the power to aid education, build roads, and subsidize business.

Likewise, Article 1, Section 8 did not give Congress the right to use tax money for whatever social and economic programs Congress might think would be good for

the “general welfare.”

Page 15: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

It is NOT the government’s business (constitutionally) to “help” individuals in

financial difficulty. Once they undertake to provide those kinds of services, they must do so with limited resources, meaning that

some discriminating guidelines must be imposed. (so many who need that kind of

help- so little resources to provide it.)

Page 16: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Neither minorities nor the majority was to be favored. Rather, the Constitution would promote the “general welfare” by ensuring a free society where free, self-responsible

individuals - rich and poor, bankers and shopkeepers, employers and employees,

farmers and blacksmiths - would enjoy “life, liberty, and the pursuit of happiness,” rights

expressed in the Declaration of Independence.

Page 17: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Thomas Jefferson on 10th Amendment

Page 18: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Once the government opens its arms (and bank accounts), it divides the citizens into two groups: • those who receive direct (personal, individual) benefit from the government•those who do not.

Page 19: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

That is why the founders designed a FEDERAL system of government that provided only for the “GENERAL” (meaning- non-specific) WELFARE of the people by confining its services to things like “national defense” and “interstate commerce”. It leaves to the states the issues of HOW or WHEN other services are provided to specific sub-groups.

Page 20: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Up until 1937 the Congress conducted its business within the boundaries of seventeen enumerated powers granted under Article I Section 8 of the United States Constitution. Anything not set down in the enumerated powers was considered outside the purview of the national government and hence, a matter for the states. (Handout)

Page 21: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Following his election in 1932, and the implementation of his so-called New Deal policies, much of President Franklin Roosevelt's legislation was challenged as unconstitutional. A majority on the Court, who had been appointed by Republicans, began declaring cornerstones of the New Deal unconstitutional in 5-4 decisions. This infuriated Roosevelt and he threaten to pack the Court with justices who would be more "sympathetic" to his New Deal legislation.

Page 22: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Roosevelt's new deal asked for extraordinary "powers similar to those necessary in time of war," to meet the emergency. Poorly crafted legislation, some of it not printed in time for floor vote was rammed through a docile and Compliant 73RD Congress. Everything he asked for was given, with little or no debate

Page 23: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government
Page 24: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The first of the new deal statutes to reach the Supreme Court for review, arrived in

January 1935. in the sixteen months following, The court decided ten major cases or groups of cases involving new

deal statutes. In eight instances out of ten the decisions went in favor of the United States Constitution and against the new

deal. Eight of the ten pieces of "must legislation" were found to be

unconstitutional.

Page 25: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The President declared war on the Supreme Court. "In November 1936 the Democratic Party won an overwhelming victory at the polls. The election confirmed the Roosevelt administration

in power and inspired the President to attempt a reorganization of the Judiciary in order to win control of that last remaining outpost of conservative Constitutionalism, the United States Supreme Court”

Page 26: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The President reacted as one would after having received a kick in a sensitive area. He went to the American people with a fireside chat and stated

"we have therefore, reached the point as a nation where we must take action to save the Constitution from the Court and the Court from itself." (March 9,1937) [II [P.754]

Page 27: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Because these powers are delegated from the people, they are the only

Legislative Powers Congress has. But our Founding Fathers went further --

trying hard to make enumerated powers so obvious that even a

politician couldn't miss the point. They passed the Ninth and Tenth Amendments to shut the door to

claims of additional power . . .

Page 28: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.&The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Page 29: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Although they take oaths to protect and uphold the Constitution…

Virtually every day that Congress is in session these same oath-takers become law-breakers -- passing laws and expending funds on items that are not Constitutionally permissible.Over the years they've used the Necessary & Proper Clause, the Commerce Clause, and Supreme Court penumbras to give themselves powers the Constitution doesn't permit. IN FACT, MOST OF WHAT THEY DO THESE DAYS IS UNCONSTITUTIONAL.

Page 30: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Constitutional historians refer to what happened next as the "Revolution of 1937." The President proposed that for each sitting justice over the age of seventy there be appointed one new Justice to "help them with their case load." In reality FDR wanted to pack the court with six additional justices willing to declare all of his "must legislation" Constitutional.

Page 31: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

This decision said in effect, Congress would no longer be held to enumerated powers but instead could tax and spend

for anything; so long as it was for "general welfare."

But the words "General Welfare" in the introduction to the enumerated powers

of Article I Section 8 were never intended to be an object for extension

of the power to tax and spend.

Page 32: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Article 1, Section 8 states: "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States."

Page 33: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

1828 edition of Noah Webster's American Dictionary of the English Language.

WEL´FARE, n. [well and fare, a good going; G. wohlfahrt; D. welvaard; Sw. valfart; Dan. velfærd.]1. Exemption from misfortune, sickness, calamity or evil; the enjoyment of health and the common blessings of life; prosperity; happiness; applied to persons.2. Exemption from any unusual evil or calamity; the enjoyment of peace and prosperity, or the ordinary blessings of society and civil government; applies to states.

Page 34: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Until this time, the American people's demands on government were modest and for the most part the government lived within its means. But LBJ and his cohorts, both Democrat and moderate Republican, said in effect, "damn the enumerated powers, full speed ahead." Something for everyone: spend now, pay later

Page 35: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

Fifty legislative debates on the merits and uses of taxpayers dollars for local purposes is very healthy. Our founding fathers believed in the idea and we practiced it, almost perfectly until 1965. This gave great power and strength to our country. People retained more than 80% of their wages, whereas today they are left with less than 50% and many of us find ourselves reduced to asking the general government for this or that. "Give me, give me, give me."

Page 36: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

By 1989, the U.S. Supreme Court had completely capitulated,

hence quietly declaring null and void the original intent of the

Founding Fathers and relegating our Constitution to little more than an interesting historical

document.

Page 37: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

So we find today that many thousands of unelected federal

bureaucrats, working in over one hundred federal agencies and at

least a dozen federal departments, collectively have authority to

regulate almost everything in the lives of the American people.

Page 38: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

You want to serve your country. To serve your country you must be in power [in Congress]. To be in power you must be re-elected. To be re-elected you must out promise your opponent. To out promise your opponent you must promise to spend for the "General Welfare."

Page 39: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

The Corporate Welfare StateCorporate Welfare: offer of special favors- cash grants, loans, guarantees, bailouts and special tax breaks – to specific industries or firms.

Fiscal 2006………………………………………………………….……….….$92B•Fiscal 2009 ……………………………………………………….………..….$200B•Stimulus Bill …………………………………………………….……………..$80B for Clean Energy•Other Recent Outlays

Auto IndustryCash for ClunkersToxic Mortgages

Examples of Corporate Welfare (Power of Lobbyists, Weakness of Lawmakers)

•Supersonic Transport ……………………….…………….….$2B•Carter’s Synthetic Fuel Fuels Corporation ………………...$2B•Fannie Mae & Freddie Mac……………………………..……$142B•Ethanol Subsidies………………………………………..……$6B/year•Broadband …………………………………………….…..…..$9.5B•Farm Subsidies……………………………………….….……$20B/year•Loans to Car Manufacturing Companies

Nissan/Ford/Tesla Motors……………………….……$10B•Clean Energy Research…………………………….…….…..$18B•Solar Energy Loan Guarantees……………………….…….. $40B•Uranium Enrichment Loan Guarantee……………….………$2B•Export-Import Bank Loan Guarantees……………………….$14.5B

Boeing ($6.4B)GE ($1.0B)Caterpillar ($.4B)

•On and on

Page 40: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government
Page 41: Many Americans believe the Sixteenth Amendment, the so- called income tax Amendment, is the constitutional provision that allows the federal government

 LARMONDO "FLAIR" ALLEN     

    AT AGE 25 - He had 9 Children.       NOW, THE REST OF THE STORY   

 

NINE welfare recipients collecting $950 each.....That equals $8,550 a month !!! Now add Food Stamps, 

Free medical, Free school lunches, and on and on   

Do the math... $102,000+ /year.  

A HUNDRED GRAND doing nothing?    

 (ALSO, BECAUSE OF THEIR FATHERS DEATH, ALL OF THE KIDS WILL COLLECT SOCIAL SECURITY UNTIL THEY ARE 18) 

This is one simple example. Now think about:

10M+ Illegal's getting much the same benefits.99 Weeks Unemployment Benefits

OWS – Want More, Forgive Loans, Etc. More and More