Rule: Taxes prohibiting conduct are generally
prohibited. You need a source of power for
Congressional action. (Art. I sec. 8, cl. 1)
“Congress has the power to lay and collect taxes
to pay debts…”
Sonzinsky v. United States - What to get
out of this case: A tax does not constitute
a constitutionally impermissible penalty
merely because it regulates,
discourages, or even deters the activities
taxed.
NFIB v. Sebelius What to get out of this case:
Just because congress calls something a
“penalty” in a statute, that does not mean it is
one. Instead, the court will look to the nature of
the alleged tax. (See taxing test).
Taxing Power Test
Raises some revenue for the
government
Does not violate another provision of
the constitution.
Does not function like a punitive measure to
compel behavior. Look to whether it is an
excessive amount or functions like a
criminal fine.
D. Spending Power Rule: The tax and spend power says
Congress can levy taxes to pay debts, provide defense, and
provide for general welfare. The “general welfare” language is
specifically tied to the power to tax.
Spending Power Test Congress may
spend to pay debts, provide for common
defense, and general welfare.
Conditional Spending Test
1. Spending is in pursuit of
general welfare.
2. Condition is unambiguous so a state knows
what to do to satisfy the condition, and when it is
violating the condition.
3. Condition is connected to the
purported ends of the statute.
4. Not barred by another provision of
the Constitution.
10th Amendment--The powers not delegated to the
United States by the Constitution, nor prohibited by it
to the states, are reserved to the states respectively,
or to the people.
Conditional spending is not coercing the states.
Threatening to withhold all federal funds if the
state does not act would be coercion, while
threatening to withhold 5% of federal funds likely
would not constitute coercion.
South Dakota v. Dole What to get out of this case: The federal
government may not use its conditional spending power to compel
behavior from the states. Here, the federal government only threatened
to withhold 5% of federal hi-way funds if the state did not enact
particular legislation. The court did not consider the amount to be
withheld to be so high as to constitute a coercion of the state.
Necessary and Proper Clause
Art. I, Sec. 8, cl. 18 Congress may choose any means that are
“necessary” and “proper” for carrying out its enumerated powers, so
long as it is rationally related to a legitimate government interest. This is
not an independent grant of constitutional power.
After you have derived the enumerated power from which
Congress may (or may not) pass a particular law, consider State
Sovereignty/10th Amendment issues.