United States Government
Chapter 11, Sections 1 & 2
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ANYTHING Congress has the power to do
comes from Article I of the Constitution.
Article I, Section 8, clauses 1- 18 … Give
Powers to Congress.
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Expressed 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 supremacy
Liberal (or Loose) Constructionists – for
implied powers, and national supremacy
Consensus – compromise! (fiscal cliff?)
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Money Powers:
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Art.
Art.
Art.
Art.
I,
I,
I,
I,
Sec.
Sec.
Sec.
Sec.
8,
8,
8,
8,
Cl.
Cl.
Cl.
Cl.
1
2
4
5
(power to Tax)
(power to borrow money)
(Bankruptcy power)
(Currency power)
Commerce Powers:
◦ Art. I, Sec. 8, Cl. 3
◦ Interstate commerce – trade between states
◦ Foreign commerce – trade with foreign countries
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The sale of public lands under Articles of
Confederation
Taxes prescribed in Art. I, Sec. 8, Cl. 1
Income tax was prescribed in the
16th Amendment (1913)
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Taxation is limited. Federal taxation MUST
be approved by Congress
Taxation can NOT apply to EXPORTS!
◦ Commerce Compromise of the
Constitutional Convention
◦ Exports are good for a nation’s economy!!
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Direct Tax: Paid by the person it is being
levied against (e.g., Income Tax)
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Indirect Tax: Paid by the person being taxed,
but they pass along those fees to others
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Tariff: Paid on imports from other countries
o Protective – designed to help American businesses by
increasing the cost of foreign goods (HIGH)
o Revenue – designed to raise money for the Federal
government (LOW)
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Even 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
deficit
The federal government sells/issue bonds in
order to borrow money, such as:
o Treasury notes
o Treasury bonds
o Series EE bonds
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All of the money borrowed by the Federal
Government over the years.
◦ The Debt Clock:
◦ http://www.usdebtclock.org/
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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
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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.
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Art. 1, Sec. 8, Cl. 5 – Congress has the sole
power to coin money and regulate its value
States cannot create their own currency
Legal Tender must be accepted for payment
of a debt
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Being 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 money
Bankruptcy law is the same in all 50 states and laws
are made by Congress based on Art. 1, Sec. 8, Cl. 4
These cases are handled in federal court,
The closest bankruptcy court is in
downtown Cleveland