Presentation on theme: "The Powers Of Congress: Money and Commerce Powers"— Presentation transcript:
1The Powers Of Congress: Money and Commerce Powers United States GovernmentChapter 11, Sections 1 & 2
2Section 1: The Powers of Congress (This is a Review of Chapter 4)!! ANYTHING Congress has the power to do comes from Article I of the Constitution.Article I, Section 8, clauses … Give Powers to Congress.
3Terminology ReviewExpressed Powers (listed in the Constitution in clauses 1–17 )Implied Powers (necessary & proper clause, aka – “Elastic Clause” clause 18)Inherent Powers (immigration law)Strict Constructionists – against implied powers, for state supremacyLiberal (or Loose) Constructionists – for implied powers, and national supremacyConsensus – compromise! (fiscal cliff?)
4Section 2: Where do the Money & Commerce Powers come from? Money Powers:Art. I, Sec. 8, Cl. 1 (power to Tax)Art. I, Sec. 8, Cl. 2 (power to borrow money)Art. I, Sec. 8, Cl. 4 (Bankruptcy power)Art. I, Sec. 8, Cl. 5 (Currency power)Commerce Powers:Art. I, Sec. 8, Cl. 3Interstate commerce – trade between statesForeign commerce – trade with foreign countries
5Where does the Federal Government get most of its money? The sale of public lands under Articles of ConfederationTaxes prescribed in Art. I, Sec. 8, Cl. 1Income tax was prescribed in the16th Amendment (1913)
6Taxation (at the Federal Level) Taxation is limited. Federal taxation MUST be approved by CongressTaxation can NOT apply to EXPORTS!Commerce Compromise of the Constitutional ConventionExports are good for a nation’s economy!!
7Direct vs. Indirect Taxes Direct Tax: Paid by the person it is being levied against (e.g., Income Tax)Indirect Tax: Paid by the person being taxed, but they pass along those fees to othersTariff: Paid on imports from other countriesProtective – designed to help American businesses by increasing the cost of foreign goods (HIGH)Revenue – designed to raise money for the Federal government (LOW)
8Borrowing PowerEven though Governmental bodies at all levels can tax, the Federal Government is the only one allowed to run a deficit.Congress can borrow money to cover its deficitThe federal government sells/issue bonds in order to borrow money, such as:Treasury notesTreasury bondsSeries EE bonds
9Public Debt (Deficit)All of the money borrowed by the Federal Government over the years.The Debt Clock:
10The Commerce Power Article I, Sec. 8, Cl. 3. That power that allows the federal government to regulate trade with foreign nations and trade between the states.However, Congress cannot:Tax Exports (Art. 1, Sec. 9, Cl. 5)Favor the ports of one State over another (Art. 1, Sec. 9, Cl. 6)Permit the taxation of vessels as they cross through various states to get to their destination. (Art. 1, Sec. 9, Cl. 6)Interfere with the slave trade until 1808 (Art. 1, Sec. 9, Cl 1.) – later became obsolete
11Famous Commerce Clause Case Gibbons vs. Ogden (1824) – Supreme Court affirmed the federal government’s ultimate authority to regulate interstate trade, and used the “supremacy clause” to invalidate regulations made by New York & New Jersey over riverboat traffic on the Hudson River.
12The Currency PowerArt. 1, Sec. 8, Cl. 5 – Congress has the sole power to coin money and regulate its valueStates cannot create their own currencyLegal Tender must be accepted for payment of a debt
13The Bankruptcy PowerBeing bankrupt is being unable to pay your debts in full.Bankruptcy is the legal proceedings by which a bankrupt person’s assets are distributed among those whom are owed moneyBankruptcy law is the same in all 50 states and laws are made by Congress based on Art. 1, Sec. 8, Cl. 4These cases are handled in federal court,The closest bankruptcy court is indowntown Cleveland