“ Government is the peoples’ business, and every man, woman, and child becomes a shareholder with the first penny of tax paid.”
Ronald Reagan, Address to the NYC Partnership Association, January 14, 1982
“*The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the debts and provide for the common Defense and general welfare of the United States;**but all Duties, Imposts and Excises shall be uniform throughout the United States.” Article 1, Section 8, Clause 1 US Constitution
The power of Congress to levy direct taxes is described in Article 1, Section 2, Clause 3. This is discussed in my post, “The Great Compromise” from February 27, 2013. The clause above generally deals with the process of indirect taxation.
* Spending Clause
This clause is labeled the “Spending Clause”. The taxing power of Congress represented in this clause is known as indirect tax. Duties are defined as a tax on goods imported into a country. Impost is to levy a tax as a charge or penalty. Excises are an internal tax levied on the manufacture, sale, or consumption of a commodity or any of various taxes on privileges often assessed in the form of a license or fee. The producers of goods and services will pass these charges to the consumer. This makes the tax indirect to the people.
According to this clause, the Congress may only levy these kinds of taxes to pay the debts and provide for the common defense and general welfare. The debts may be monies borrowed from other countries or other groups. Common defense would include the financial support of the military and groups such as National Guard. The Congress or the Courts have never strictly defined the general welfare.
Initially, the Congress and Executive branches were careful about spending money for the general welfare. They defined spending for the general welfare as something that would benefit all the States. An example might be that money would be allocated for building a lighthouse and maintaining a harbor where goods would be imported and exported to benefit all people in all states. Something that Congress might not fund would be building a recreation center in a local community. This action would not benefit all.
Over the years, this clause has come to mean whatever the Congress wants it to mean. Thus we have funding for some very unusual projects over the years. The spending is based on the will of the Congress. The will to spend (other people’s money) should be strongly influenced by the input from the constituents of each Congressional District and each State.
** Uniformity Clause
The Uniformity Clause directs that the indirect taxes imposed by Congress must be the same throughout the country. Example would be if there is a tax on vehicles, gasoline, tobacco, or cosmetics, it must be the same throughout the whole country.
An important example of paying taxes:
When they came to Capernaum, those who collected the two-drachma tax came to Peter and said, “Does your teacher not pay the two-drachma tax?”
He said, “Yes.” And when he came into the house, Jesus spoke to him first, saying, “What do you think, Simon? From whom do the kings of the earth collect customs or poll tax, from their sons or from strangers?”
When Peter said, “From strangers,” Jesus said to him, “Then the sons are exempt.”
“However, so that we do not offend them, go to the sea and throw in a hook, and take the first fish that comes up; and when you open its mouth, you will find a shekel. Take that and give it to them for you and Me.”
Matthew 17: 24-28
We the people give Congress the power to collect the money necessary to provide for defense if necessary and to take care of needs at home.
The benefit to we the people is that the federal government is strong enough to do and finance the things authorized by the Constitution. The taxes levied by the Congress are fair in that the rate is the same across all the States.
References:
Bible, NASV
Findlay, Bruce Allyn and Findlay, Esther Blair. Your Rugged Constitution. Stanford: Stanford University Press, 1950
Hannaford, Peter. The Quotable Ronald Reagan. Washington, DC: Regnery Press, 1998
Webster’s Dictionary and Merriam Webster online
Reclaiming the Shining City 