Taxing and Spending Clause

Art I, Sec. 8, Clause 1The Congress shall have Power To lay

and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States

Two types of tax in original Constitution

Indirect taxes: Allowed if uniform Includes: customs duties, excises or imposts

Direct taxes: Must be apportioned among states on basis of populationIncludes: head taxes, property taxes

Springer v. U.S. (1881)Challenge to temporary income tax

during Civil WarQuestion was whether this was direct

federal tax, rather than properly apportioned among the states

Court unanimously find that prohibition on direct taxes only applied to head taxes & property taxes levied on land

16th AmendmentThe Congress shall have power to

lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Helvering v. Davis (1937)Companion case to Steward Machine,

concerned old age and survivors benefits portions of Social Security

Key challenge: states had traditionally provided such welfare benefits

Cardozo notes impossibility of such during “national calamity” of Great Depression

U.S. v. Kahriger (1953)Gamblers’ Occupational Tax Act of

1951 requires registration as a professional gambler

Kahriger argues that gambling properly regulated as moral issue by states and registration violates 5th Amendment right against self-incrimination

U.S. v. Kahriger (1953)

From majority opinion:

“the instant tax has a regulatory effect. But regardless of its regulatory effect, the wagering tax produces revenue.”

Should We Tax Fattening Foods?: A Quick

Argument For Taxing High Fructose Corn Syrup

Obesity Rates in U.S. - 1990

Obesity Rates in U.S. - 2009

Estimated diabetes costs in the United States in 2007

Total Cost: $174 billionDirect medical costs: $116 billionIndirect costs: $58 billion (disability, work loss, premature mortality)

Source: Centers for Disease Control