Taxing & Spending Clause

Question 1

Language of the Taxing and Spending Clause (Art. I Sec. 8, Clause 1)

Answer 1

“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”

Question 2

3 Questions to ask for determining if a Congressional act can be passed under Taxing & Spending Clause?

Answer 2

1. Is the tax within Congress’s constitutional taxing power?
2. Is the tax actually a penalty?
3. What kind of conditions can Congress place on the receipt of federal funds?

Question 3

5 limitations on Congress Taxing and Spending power

Answer 3

1. Must be in pursuit of the general welfare
2. Must state conditions clearly and explicitly
3. Must be related to federal interests in programs/ projects– Germaneness Requirement
4. Must be no other constitutional bar
5. Must comply with the 10th amendment’s anti-commandeering principle

Question 4

Which of the following Taxing and Spending Clause interpretations (Madisonion or Hamiltonian) is used today, what case decided this and how is it defined?

Answer 4

US. v. Butler upheld the Hamiltonioan view:

T&S Clause confers a power separate and distinct from those later enumerated and is not restricted in meaning by the grant of them. Congress has a substantive power to tax and to appropriate, limited only by the requirement that it shall be exercised to provide for the general welfare of the United States.

Question 5

Pennhurst State School & Hospital v. Halderman: Takeaway

Answer 5

Congress may place conditions on grants provided that the conditions are expressly stated so that
states knowingly accept or refuse and understand the consequences of their choices

Question 6

Oklahmoa v. Civil Service Commission: Takeaway

Answer 6

1. Congress has broad spending powers to set conditions even on areas where Congress might otherwise be unable to regulate
2. Congress “does have the power to fix the terms upon which its fund allotments to states shall be disbursed”

Question 7

South Dakota v. Dole: Holding and Takeaway

Answer 7

Holding:

Court said conditions on federal highway funds on states that do not have a drinking of 21 or higher is related to general welfare (this is extraordinarily broad)

Takeaway:

1. A withholding of a small amount of funds is not a coercive measure and a proper exercise of taxing and spending power
2. Sets out the 5 limits on on Taxing & Spending Power (General Welafre, Unambiguous, Germaness, No Constitional bar, Comply with anti-comandeering)