Cases- Taxing and Spending Flashcards
J.W. Hampton, Jr & Co. v. U. S (1928)
Is the provision in the Tariff Act of 1922, which granted the President of the United States the power to adjust tariff rates, delegated legislative power in violation of the constitutional separation of powers?
Congress may delegate power to an administrative agency as long as it provides a standard or principle to guide the agency’s exercise of that power.
Congress does not have to rely exclusively on revenue needs when constructing taxes
McCray v. U.S (1904)
Oleomargarine Act of 1886, higher tax on artificial margarine
The court cannot restrict the lawful exercise of congressional power
Bailey v. Drexel Furniture Co. (1922)
Child labor tax law of 1911, 10% tax on profits of child labor
Regulation of child labor is a state function, law is levied under the fed. Gov under its taxing power
Does the law impose a tax or a penalty?
Tax is a penalty w the characteristics of regulations and punishment
Fed can only impose taxes while states can regulate
Taxing Analysis of NFIB v. Sebelius (2012)
Does congress have power under the taxing and spending clause to require most Americans to purchase health insurance?
SCOTUS found that the individual mandate penalty is a tax that is a valid exercise of Congressional authority under the taxing and spending clause. (tax power)
South Dakota v. Dole (1987)
Does Congress hold the right to withhold funds from states that do not have a minimum drinking age of 21?
Yes, so long as the funds are small and not coercive and must be related. (mild financial inducement)
Financial incentives that are not coercive relayed by Congress are a constitutional exercise of the taxing and spending power (spending power)
Medicaid Expansion Analysis of NFIB v. Sebelius (2012)
Did Congress exceed its enumerated powers when it pressured states into expanding Medicaid by withholding all federal funds?
The Supreme Court found that the Medicaid expansion provisions were unconstitutionally coercive, and Congress did not have the authority under the Spending Clause. (spending power and anti-commandeering)
the case NFIB v. Sebelius (2012) had a saving construction.
In that case, the Supreme Court upheld the constitutionality of the individual mandate provision of the Affordable Care Act (ACA) under Congress’s taxing power, but not under its commerce power. The Court used a saving construction to interpret the mandate as a tax rather than a penalty, which allowed it to be upheld under the Constitution.
