This is an extract of our Other National Powers Taxing Spending War Treaties And Foreign Affairs document, which we sell as part of our Constitutional Law Outlines collection written by the top tier of Oklahoma City University School Of Law students.
The following is a more accessble plain text extract of the PDF sample above, taken from our Constitutional Law Outlines. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Other National Powers: Taxing, Spending, War, Treaties, and Foreign Affairs Like the regulation of IC, the taxing & spending powers of Fed Gov have been used to attempt to change State regulatory policy
Section 1. The Taxing Power as a Regulatory Device Art. I SS8, cl. 1 grants Congress the Power to lay & collect Taxes, Duties, Imposts and Excises to pay the Debts & to provide for the Common Defense and Gen. Welfare of the U.S. PRE 1937 CASES: Bailey v. Drexel Furniture Co. (Child Labor Tax Case)(BAD LAW, BAD TEST) Test: Is it an incidental restraint, ie. excise tax or is it a penalty?
Bad Law, relies on potential for abuse argument The motive, other than taxation, must be shown on the fact of the act The motive & operation here was so blatantly punishment & penalty for a disliked business conduct The "tax" claim was pure pre-text and was thus contradictory to McCulloch Veazie Bank Tax increased 10 fold but held not to be a penalty "if the purpose of the tax falls w/in the enumerated powers then it is okay given the existence of the N&P clause, but if it is a penalty it is not. Sonzinsky Tax of annual license fee of $200 for Gun Sales upheld cause was "productive of some revenue POST 1937 Cases U.S. v. Kahriger Ct. upheld Fed Occupational Tax on Gambling Motive is irrelevant now A fed tax doesn't cease to be valid merely cause it discourages or deters the activities taxed Unless there are penalty provisions extraneous to any tax need, courts are without authority to limit the exercise of the tax power Start comparing all Fed Powers together , rather than individually
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