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Flashcards in Taxing Power Deck (5):

Taxing Power

Art I §8: Congress shall have the power to lay and collect taxes, duties, excises and to pay debts and provide for the common defense & general welfare of the U.S.


Taxing Power Test

1. Must be naturally & reasonably related to collection of tax
2. Can’t be pre-tax to some other issue


Taxing Power

3 considerations: (1) Is it a tax imposed burden?; (2) Is it punitive, or incentive?; (3) Who administers?


Child Labor Tax Case – Bailey v. Drexel Furniture (1922) J. Taft

can’t enact penalties [outlier case]

Holding: Not valid under taxing power. B/c penalty, not a tax, to try to regulate child labor (10th Amend)

Test: (1) must be naturally/reasonably related to collection of tax; (2) can’t be pre-tax to other issue
This taxes failure to conform conduct, is too broad
3-prong considerations: (1) Can’t be exceedingly heavy burden; (2) No scientier requirement (only apply to those who know they are practicing a certain kind of behavior); (3) Who administers? Needs to be collected by normal tax collectors


U.S. v. Kahriger (1953) J. Reed

Congress motive doesn’t matter
Holding: Tax on gambling not invalid even if it discourages activities taxed. Congress’s motive n/a.