The Powers of Congress1. The Power to Tax• About 95% of the money that the federal government

takes in a year comes from congressional taxes. • Taxes- charges levied by government on people or

property to raise money to meet public needs. • Limits on the power to tax: 1. Congress may only tax for public purposes, not private benefit.2. Congress may not tax exports. 3. Direct Taxes must be apportioned among the states according

to their populations. (exception is income tax-16th Amendment)4. Indirect Taxes must be levied at the same rate in every part of

the country. (i.e. cigarettes, alcohol)

The Powers of Congress2. The Power to Borrow•There are no limits on the amount of money that Congress may borrow, nor is there a restriction on the purpose for the borrowing.•Congress attempts to put a ceiling on the public debt. (Borrowed money that hasn’t been repaid and is accumulating interest).•Deficit Financing- The government practice of spending more than it takes in each year, and borrowing to make up the difference.

http://www.usdebtclock.org/

The Powers of Congress

3. The Commerce Power-The power of Congress to regulate interstate and foreign trade. -This power allows Congress to ensure that the states are, in fact, United. -Gibbons v. Ogden•Limits on the Commerce Power:1.Cannot tax exports2.Cannot favor the ports of one State over those of any other in the regulation of trade. 3.Cannot require vessels of transportation to pay taxes in another state.

The Powers of Congress4. The Currency Power-The Constitution gives Congress the power to coin money and regulate the value of that money. -Legal Tender- any kind of money that a creditor must by law accept in payment for debts. (Congress didn’t make paper currency legal tender until 1863).

The Powers of Congress

5. The Bankruptcy Power-The Constitution gives Congress the power to create uniform laws on Bankruptcies. -A bankrupt individual/company/organization is one a court has found to be unable to pay debts in full. -Bankruptcy- the legal proceeding in which the bankrupt’s assets are distributed among those to whom a debt it owed.*Nearly all bankruptcy cases are heard in federal district courts.

The Powers of Congress6. Foreign Relations Power-This power is shared with the President-This power comes from two sources: a. Various expressed powers such as the Commerce Clause and War Powers. b. The U.S. is a sovereign nation with a duty to protect itself. 7. War Powers-This power is shared with the President.-There are many congressional war powers (i.e. declare war, raise an army and navy, etc).

The Powers of CongressOther Expressed Powers:•Naturalization- the process by which a citizen of one country becomes a citizen of another. •The Postal Power•Copyrights and Patents-Copyright- exclusive right of an author to reproduce, publish, or sell their creative work. -Patent- grants a person the sole right to manufacture, use, or sell any new invention. •Weights and Measures (time, distance, weight)•Power over Territories and Other Areas (i.e. Puerto Rico)•Eminent Domain- to take private property for public use.•Judicial Powers- create courts, define crimes

The Powers of CongressImplied Powers•Congress appropriates (assigns to a particular use) billions and billions of dollars every year under its implied powers. • Ex. Education

•What are implied powers?•What clause is the constitutional basis for the implied powers?•“To make all Laws which shall be necessary and proper for carrying into Execution the foregoing powers and all other powers vested by this Constitution.”

The Powers of CongressThe Debate Over Implied Powers: •The best example of the argument between strict vs. liberal interpretations of the Constitution is seen in the McCulloch v. Maryland landmark case.•Liberal Interpretations= for the Bank of the U.S.A.•Strict Interpretations= against the Bank of the U.S.A.•The court ruled that the creation of the Bank of the U.S.A. was “necessary and proper” to the execution of four expressed powers (taxing, borrowing, currency, and commerce). •This ruling fundamentally changed how our government has developed since that time.