The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to...

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Transcript of The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to...

Page 1: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.
Page 2: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

The Power To Tax• Article I, Section 8, Clause 1 of the Constitution grants Congress

the power to tax.• The Sixteenth Amendment gives Congress the power to levy an

income tax.

Limits on the Power to Tax

The power to tax is also limited through the Constitution. According to the Constitution:

1. Taxes must be used for public purposes only.

2. Federal taxes must be the same in every State.

3. The government may not tax exports.

Page 3: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

Current Federal Taxes

Individual Income Tax• Individual income taxes

regularly provide the largest source of federal revenue.

• The tax is levied on each person’s taxable income.

Corporation Income Tax• Each corporation must pay a tax

on its net income, that is, on the earnings above the costs of doing business.

The Income Tax

The income tax is the largest source of federal revenue today. The tax is also a progressive tax, that is, the higher the income and the ability to pay, the higher the tax rate.

Page 4: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

Social Insurance Taxes

There are three main types of social insurance taxes levied:

OASDI• The Old-Age, Survivors, and Disability program is the basic

Social Security program. Medicare

• Medicare is health insurance for the elderly and part of the Social Security program.

Unemployment Compensation• The unemployment compensation program pays benefits to

jobless workers and is also part of the overall Social Security program.

Page 5: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

Other Types of Taxes

Excise Taxes• An excise tax is a tax laid on the manufacture, sale, or

consumption of goods and/or the performance of services.

Custom Duties• A custom duty is a tax laid on goods brought into the U.S. from

abroad.

Estate and Gift Taxes• An estate tax is a levy imposed on the assets (estate) of one

who dies. A gift tax is one imposed on the making of a gift by a living person.

Page 6: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

The Federal Government’s IncomeFederal revenue comes from several different sources:

Page 7: The Power To Tax Article I, Section 8, Clause 1 of the Constitution grants Congress the power to tax. The Sixteenth Amendment gives Congress the power.

Taxing for Nonrevenue Purposes

• Besides taxing for revenue purposes, the Federal Government sometimes taxes for the purpose of regulating and even discouraging some activity that Congress thinks is harmful or dangerous to the public.

• The Supreme Court has upheld Congress’s taxing for nonrevenue purposes.

• However, the Supreme Court can still rule a tax unlawful if it finds that the tax was imposed for improper reasons.


EATLP ANNUAL CONGRESS 2018 TAX TRANSPARENCY QUESTIONNAIRE: Ireland Report_Irel… ·  · 2018-01-24EATLP ANNUAL CONGRESS 2018 TAX TRANSPARENCY QUESTIONNAIRE: Ireland ... border tax

EATLP ANNUAL CONGRESS 2018 TAX TRANSPARENCY QUESTIONNAIRE: Ireland Report_Irel… ·  · 2018-01-24EATLP ANNUAL CONGRESS 2018 TAX TRANSPARENCY QUESTIONNAIRE: Ireland ... border tax

Tax Reform in the 113th Congress: An Overview of Proposals · 3 Americans for Tax Reform (ATR) opposes all tax increases as a matter of principle. ... Tax Reform in the 113th Congress:

Tax Reform in the 113th Congress: An Overview of Proposals · 3 Americans for Tax Reform (ATR) opposes all tax increases as a matter of principle. ... Tax Reform in the 113th Congress:

Taxes:. The Power to Tax: Recall, the Constitution gives Congress the power to tax in order to raise the money needed to fund the Federal Government.

Taxes:. The Power to Tax: Recall, the Constitution gives Congress the power to tax in order to raise the money needed to fund the Federal Government.

Muni tax Exemption Support Letter - Novogradac & … Wilson Member of Congress Donna Edwards Member of Congress ~mer~ ... Muni tax Exemption Support Letter Author: Congress of the

Muni tax Exemption Support Letter - Novogradac & … Wilson Member of Congress Donna Edwards Member of Congress ~mer~ ... Muni tax Exemption Support Letter Author: Congress of the

How Congress Voted -Final Report€¦ · KEY HOUSE VOTES. 4 114TH CONGRESS FINAL REPORT 6. America’s Small Business Tax Relief Act ... The bill would repeal the estate tax once

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GENERAL EXPLANATION OF TAX LEGISLATION ENACTED IN …general explanation of tax legislation enacted in the 107th congress prepared by the staff of the ... \seals\congress.#13. general

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TAx CUTS AND THE BUDGET SURPLUS - United States Congress ... Congress... · criticized the tax relief package as "too big," and have argued that the government cannot part with that

TAx CUTS AND THE BUDGET SURPLUS - United States Congress ... Congress... · criticized the tax relief package as "too big," and have argued that the government cannot part with that

Tax Reform in the 113th Congress: An Overview of Proposals

Tax Reform in the 113th Congress: An Overview of Proposals

Issues with the Articles of Confederation: Weak federal government, power rested with the states Congress could not tax Congress could not regulate.

Issues with the Articles of Confederation: Weak federal government, power rested with the states Congress could not tax Congress could not regulate.

Taxes:. The Power to Tax: Recall, the Constitution give Congress the power to tax in order to raise the money needed to fund the Federal Government. 4.

Taxes:. The Power to Tax: Recall, the Constitution give Congress the power to tax in order to raise the money needed to fund the Federal Government. 4.

Tax Reform in the 113th Congress: An Overview of Proposals · 2014. 4. 4. · Tax Reform in the 113th Congress: An Overview of Proposals Congressional Research Service Summary Many

Tax Reform in the 113th Congress: An Overview of Proposals · 2014. 4. 4. · Tax Reform in the 113th Congress: An Overview of Proposals Congressional Research Service Summary Many

Women in Tax National Congress 2018 - Microsoft · 2018-09-21 · in Tax National Congress Organising Committee since its inception. Since 2015, Julie has been a co-chair of The Tax

Women in Tax National Congress 2018 - Microsoft · 2018-09-21 · in Tax National Congress Organising Committee since its inception. Since 2015, Julie has been a co-chair of The Tax

Assignment 1 An Overview of the Income Tax System Quiz T F 1. Congress has the power to tax all income from whatever source derived, whether by corporations,

Assignment 1 An Overview of the Income Tax System Quiz T F 1. Congress has the power to tax all income from whatever source derived, whether by corporations,

Declaration of Independence (1776). Second Continental Congress met in 1775 -Rejected Parliament’s power to tax -Many delegates still want reconciliation.

Declaration of Independence (1776). Second Continental Congress met in 1775 -Rejected Parliament’s power to tax -Many delegates still want reconciliation.

Jake Towne for Congress - Income Tax Plank Handout

Jake Towne for Congress - Income Tax Plank Handout

The 34th Congress of Euroheat & Power

The 34th Congress of Euroheat & Power

Congress Presentation Power Points Prof LM

Congress Presentation Power Points Prof LM

Report to Congress on Private Tax-Exempt, Taxable and ...

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Congress Power Point

Congress Power Point

Where Does Congress Power Come From? Congress gets all of its power from Article I of the U.S. Constitution Congress gets all of its power from Article.

Where Does Congress Power Come From? Congress gets all of its power from Article I of the U.S. Constitution Congress gets all of its power from Article.