Legislative Powers - Tax & Spend

Question 1

Where is the Taxing Clause or the tax and spend power located in the Constitution?

Answer 1

Article 1, Section 8, Clause 1

Question 2

What power does Article 1, Section 8, Clause 1 of the Constitution give Congress?

Answer 2

It’s the Taxing Clause or the power to tax and spend

Question 3

What does the Taxing Clause state?

Answer 3

Congress shall have the power to lay and collect taxes, duties, imposts, and excises to pay debts and provide for a common defense and the general welfare of the U.S.

Question 4

How many requirement is Congress’ power to tax and spend limited by?

Answer 4

only 1

Question 5

What is the one requirement that limits Congress’ power under the Taxing Clause?

Answer 5

That the tax be exercised to generate revenue to support the general welfare of the U.S.

Question 6

T/F

The breadth of the requirement that a tax be exercised by Congress to provide for the general welfare of the U.S. means that Congress’ taxing power is practically unlimited?

Answer 6

True

Question 7

Is Congress’ taxing power under the Taxing Clause practically unlimited? why?

Answer 7

Yes

Because the one requirement limiting it is so broad as to generate revenue supporting the general welfare of the entire U.S.

Question 8

Can Congress impose a tax to regulate, deter, or suppress an activity?

Answer 8

Yes

Question 9

What is the primary issue in South Dakota v. Dole?

Answer 9

Federal Law says that Congress will withhold 5% of Federal highway funds from any state that allows people under 21 to purchase alcohol

Question 10

What is the holding from South Dakota v. Dole?

Answer 10

It is constitutional for Congress to withhold 5% of Federal highway funds from any state that allows people under 21 to purchase alcohol under the Taxing Clause

Question 11

Can Congress use its power to regulate via the Taxing Clause by requiring entities that accept government funds to behave a certain way?

Answer 11

yes, provided that 4 specific requirements are met

Question 12

What are the 4 requirements (rule established in South Dakota v. Dole) that Congress needs to meet in order to use its tax and spend power to regulate states/entities that accept government funds/conditional grants to behave in a certain way?

Answer 12

1. Unambiguous and obvious - condition must be clearly stated in statute
2. Promote general welfare - condition must do so
3. Reasonably related connection - condition must be reasonably related to the federal interest it is tied to (regulating drinking age is reasonably related to highway safety/transportation funds)
4. Constitutional Coherence - condition cannot violate another other provision of the Constitution (cannot tie money to an Equal Protection Clause violation - like saying the reasoning for loosing money is because Catholics are allowed to use highways)

Remember to ask if it is coercive to the State… when pressure turns into compulsion

Question 13

What was the primary issue in NFIB v. Sebelius?

Answer 13

Challenging the constitutionality of the Affordable Care Act, particularly the individual mandate

Question 14

Is Congress using it’s tax and spend power to regulate drinking age among the states reasonably related to highway safety/transportation funds?

Answer 14

yes

Question 15

What were the rules of law that came from NFIB v. Sebelius?

Answer 15

1. The Court held that the Affordable Care was was not justified by the Commerce Clause, but was justified by the the Taxing Clause —it has the power to tax people for not purchasing health insurance. N & P Clause also pushed it specifically
2. Congress could not use the tax and spend power to coerce a Medicaid expansion, where they would lose new Medicaid money. The Court said this was like a new program and was too coercive under South Dakota v. Dole

Question 16

Does Congress make conditional grants to states that are subject to certain conditions?

Answer 16

yes