taxing and spending clause
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Taxing and Spending Clause. Art I, Sec. 8, Clause 1. - PowerPoint PPT PresentationTRANSCRIPT
Taxing and Spending Clause
Art I, Sec. 8, Clause 1The Congress shall have Power To lay
and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States
Two types of tax in original Constitution
Indirect taxes: Allowed if uniform Includes: customs duties, excises or imposts
Direct taxes: Must be apportioned among states on basis of populationIncludes: head taxes, property taxes
Springer v. U.S. (1881)Challenge to temporary income tax
during Civil WarQuestion was whether this was direct
federal tax, rather than properly apportioned among the states
Court unanimously find that prohibition on direct taxes only applied to head taxes & property taxes levied on land
16th AmendmentThe Congress shall have power to
lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
Helvering v. Davis (1937)Companion case to Steward Machine,
concerned old age and survivors benefits portions of Social Security
Key challenge: states had traditionally provided such welfare benefits
Cardozo notes impossibility of such during “national calamity” of Great Depression
U.S. v. Kahriger (1953)Gamblers’ Occupational Tax Act of
1951 requires registration as a professional gambler
Kahriger argues that gambling properly regulated as moral issue by states and registration violates 5th Amendment right against self-incrimination
U.S. v. Kahriger (1953)
From majority opinion:
“the instant tax has a regulatory effect. But regardless of its regulatory effect, the wagering tax produces revenue.”
Should We Tax Fattening Foods?: A Quick
Argument For Taxing High Fructose Corn Syrup
Obesity Rates in U.S. - 1990
Obesity Rates in U.S. - 2009
Estimated diabetes costs in the United States in 2007
Total Cost: $174 billionDirect medical costs: $116 billionIndirect costs: $58 billion (disability, work loss, premature mortality)
Source: Centers for Disease Control