Chapter 11-Section 1 - PowerPoint Presentation

Slide1

Chapter 11-Section 1

Expressed Powers of Money and CommerceSlide2

Pair up with an elbow partner…you

need pen and paper with both full names at the top. Title

it “Taxes” 1.) In your words explain what is a tax, and what it is used for?2.) Give yourself 2 points for every example you can think of types of tax (you might know 3 types)3.) Give yourself 2 points for every example you can think of that taxes go to…put them in list form (Remember we are talking about the Federal Government…choose examples you think the Federal Government would pay for)

TaxesSlide3

Expressed Powers-

Powers afforded to the government explicitly and in specific wording in the constitution

Implied Powers-Powers afforded to the government by reasonable deduction from the expressed powersInherent Powers-Powers afforded to the government because it created a national government Commerce Power-The power of Congress to regulate interstate and foreign trade Congressional Powers Slide4

Congress has the power to tax

Why?

The lack of the power to tax was a leading cause of creation of the ConstitutionCongress had to beg the states for money…most states essentially ignored requests from CongressThe PurposeTo pay debtsProvide for the common defense and general welfare…in other words, to meet public needsProtect domestic industryMoneySlide5

There are two

general types of tax:

Direct and Indirect:Direct Tax: paid directly to the government by the person on whom it is imposedIncome FICA (payroll)Capital gains: (stocks and real estate)Estate (death): exempt for first 5.4 million of value of estate Indirect Tax: Paid to the government by someone else and then passed on to you as the consumerFuelAlcoholCigarettes

Tariffs: a tax on foreign goods imported into country (cars, food, appliances, etc.)

Types of taxesSlide6

Congress has the power to borrow money

How?

Issues or creates debt in the form of: bonds, bills and notesPublic debt: All of the unpaid money borrowed by Congress Deficit financing: also called Deficit spendingGovernment spends more than it earns each yearBorrows – issues more debt to make up the differenceCAUSES: downturn in national economy, major tax cuts (less income to the government), the “War on Terrorism” and wars in Iraq and AfghanistanDebt Slide7

Congress has the power to coin moneyWhy?

With independence, a stable system of currency (money) collapsed: each state issued its own currency and some people still used English and Spanish coins as well. Money without taxing power is worthless.

Creating a stable uniform currency was beneficial to the nationLegal tender: Any kind of money that by law a creditor must accept as payment for debtsFirst paper currency that was legal tender wasn’t printed until 1863!Bankruptcy:When a Federal court determines that a person or company is insolvent: unable to pay their debts in full Currency & bankruptcySlide8

Congress has the power to regulate interstate and foreign commerce (trade)

Why?

The lack of the power to regulate commerce was a leading cause of the creation of the ConstitutionEffect:This power is responsible for building a strong and United StatesRegulates commerce with foreign nations & between statesHelps to prevent monopolies by corporationsHas extended Federal authority into many areas of American life (the ban on discrimination based on race, color, religion, gender or national origin is an example) commerceSlide9

Adapted from Mr. Rosenstock’s Presentation “Everything you wanted to know about the

Expressed

Powers of Money and Commerce”Sources