Download Taxing and Spending Clause

Taxing and Spending Clause
Art I, Sec. 8, Clause 1
The 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 population
Includes: head taxes, property taxes
Springer v. U.S. (1881)
Challenge to temporary income tax
during Civil War
Question 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
th
16
Amendment
The 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
th
5 Amendment right against selfincrimination
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 billion
Direct medical costs: $116 billion
Indirect costs: $58 billion
(disability, work loss, premature mortality)
Source: Centers for Disease Control