Legislative Branch
Taxing and Spending Power
“The Power of the Purse”
The power to levy taxes and provide for the
general welfare of the U.S. is among the
most important powers of Congress.
No government agency can spend money
without it being authorized by Congress.
Congress uses taxes for many purposes.
Taxing Power
• Congress uses its taxing power to expand
its regulatory powers.
• When Congress gives money to state or
local governments, it often requires
specific regulations to be followed.
• Congress can levy heavy taxes on
undesirable products to discourage its
use. (Tobacco)
Taxes to regulate economy
• Congress can cut individual taxes to
stimulate the economy.
• Congress can increase taxes to try and
slow economic growth.
Power to Borrow Money
• Securities, bonds, or notes
• Borrowing from other countries
• Borrowing Money causes=
NATIONAL DEBT
National Debt
• Debt occurs when government must
borrow money to meet its operating
expenses
• Current National Debt
• How our money is spent
• Congress has attempted to set a limit on
debt but has continued to raise it so
government can pay expenses.
Discussion Questions
• How do you feel about our National Debt
situation?
• Should the government do something about the
debt situation? What?
• What are possible solutions to paying off the
debt?
• 2 solutions to end debt: 1. Increase taxes or 2.
Decrease spending
– What are the arguments for each of these solutions?
What kind of opposition would each solution face in
Congress?
Quotes
• “In this world nothing can be said to be certain, except
death and taxes.”
– Benjamin Franklin
• “Taxes are what we pay for civilized society”
– Oliver Wendell Holmes Jr.
• “Collecting more taxes than is absolutely necessary is
legalized robbery.”
– Calvin Coolidge