Expressed Powers – written in the Constitution

The Power to Tax Article I, Section 8, Clause 1 – “to lay and collect taxes, duties…” Tax – charge charged by government, on people or property to meet public needs Protective tariffs – taxes on imported goods to make revenue (make money for federal govt)

Other taxes Income taxes – taxes on income Direct tax - paid by person on whom it is imposed EXAMPLE: real estate tax; income taxes Indirect tax – tax passed on to consumer at a higher price EXAMPLE: tax on cigarettes

Limits on taxing power May not collect taxes on churches No poll taxes in order to vote May tax only for public purposes (not private) May not tax exports (goods leaving country) Direct taxes must be apportioned among states

Borrowing Power Borrowing money on credit Deficit financing – spend more than taking in EXAMPLE: Great Depression, WWII Public debt – all the money borrowed but not yet repaid

Commerce Power Power to regulate interstate and foreign trade Gibbons v. Ogden, 1824 – only Congress can regulate trade between states (including water travel/trade) EXAMPLE: cotton from Texas being sold to factory in New York Civil Rights Act of 1964 passed using this power

Limits on Commerce Power Cannot tax exports Cannot favor ports of one state over another States cannot charge other states import/export duties Could not interfere with slave trade until 1808

Debt (and how it is repaid) When a person goes into debt to one or more persons and can not pay them back, the person is forced into bankruptcy. Bankruptcy is the legal process by which a persons assets are distributed among the people he or she is in debt to.

Currency Power Congress can coin money and regulate the value thereof Legal tender – any kind of money that a creditor must by law accept in payment for debts EXAMPLE: dollar bill, quarter National currency not established until 1861