- Slides: 22
The Expressed Powers of Money and Commerce CHAPTER 11 SECTION 1
Starter �Who authorizes changes to our currency?
Objective �Students will be able to: 1) Explain what is meant by the expressed, implied, and inherent powers of Congress; 2) Identify the specific commerce and money powers of Congress. Guiding Question: What powers over money and commerce does the Constitution give to Congress and what limits does it place on these powers?
Questions � 1) Explain the three different types of congressional powers; � 2) Describe the commerce power; why did the Framers grant this power to Congress? � 3) Draw Inferences: why did the Framers place limits on the power of Congress to levy taxes? � 4) Why did the Framers grant the power to tax? What is the purpose of taxes?
Intro �Article 1 of the U. S. Constitution describes Congress and grants it particular powers and also denies it others. �In this section, students will learn about two expressed powers: the commerce power and the power to tax.
Delegated Powers �Congress has three types of delegated (“given”) powers: 1) Expressed – explicit; stated in the Constitution. - For example, Congress can coin money 2) Implied – powers not listed in the Constitution, but are needed to carryout its expressed powers. - For example, based on the expressed power to coin money, Congress can issue greenbacks.
Delegated Powers 3) Inherent – powers that belong to all sovereign nations; - For example, the power to control a nation’s border.
Expressed Powers �Article 1, Section 8, lists 18 separate clauses detailing 27 powers of Congress.
Commerce Power �The power of Congress to regulate interstate commerce (between states) and foreign trade. �Using your phone, take 5 minutes to research and find a federal law passed under Congress’ commerce power.
Limits on the Commerce Power �Commerce Clause was used to pass the 1964 Civil Rights Act, prohibiting racial discrimination by businesses; American With Disabilities Act �Some limits: Could not interfere with the slave trade until 1808; Congress may not tax exports or favor one State over another.
Question �Who ultimately defines the meaning of the Commerce Clause?
Power to Tax �A tax is a charge imposed by government on persons or property to raise money to fund public needs. �“To lay and collect Taxes, Duties, Imposts and Excises, to pay debts and provide for the common Defense and general Welfare of he U. S….
Power to Tax � 90 percent of the revenue of the Federal Government comes from taxes, of which there are two kinds: 1) Direct Taxes: paid directly by the taxed person (e. g. , income tax); and 2) Indirect Taxes: paid by one person, and then are passed on to others, such as consumers.
Purpose of Taxes 1) used to raise revenue for public purposes/needs; 2) to protect domestic industry against foreign competition (protective tariffs); and 3) to protect public health and safety. Note: a limit on the power to tax is that Congress may tax only for public purposes
Income Taxes � 16 th Amendment provides the power of Congress to lay and collect taxes on income.
Borrowing, Bankruptcy, and Currency Power �Borrowing Power – no constitutional limits on the amount of money Congress may borrow on credit and no restrictions on the purposes for borrowing. - Public Debt: all of the money borrowed by the Federal government and not yet repaid. - Today, $16 trillion. �Bankruptcy Power – Congress can establish bankruptcy laws [a bankrupt person is one a court finds to be unable to pay his/her bills; bankruptcy is the process by which this person’s legal assets are divided among those owed. ] �Currency Power – Congress can coin money and regulate its value.
Question �Should there be a constitutional amendment limiting how much Congress can borrow?
Exit Ticket 1) Congress can charge an amount of money on persons or property called a _______ to raise money for public needs; 2) The delegated powers of Congress include the _______, and _______ powers. 3) The _____ power allows Congress to regulate interstate and foreign trade