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United States v. Butler , U. Supreme Court case that held that the U. Congress has not only the power to lay taxes to the level necessary to carry out its other powers enumerated in Article I of the U. Constitution but also a broad authority to tax and spend for the "general welfare" of the United States. The main issue of the case was whether certain provisions of the Agricultural Adjustment Act of conflicted with the U. The Act imposed a tax on processors of farm products, the proceeds of which to be paid to farmers who would reduce their area under cultivation and consequently their crops yields. The Act was intended was to increase the prices of certain farm products by decreasing the supply of quantities produced. The Court held that the so-called tax was not a true tax [3] since the payments to farmers were coupled with unlawful and oppressively-coercive contracts, [3] and the proceeds were earmarked for the benefit of farmers complying with the prescribed conditions. The Court also held that making the payment of a government subsidy to a farmer conditional on the reduction of the planned crops went beyond the powers of the national government. impact of gibbons v ogdenImpact of gibbons v ogden - rather grateful
The Lehrman Institute. A political showdown between Maryland and the national government emerged when James McCulloch, an agent for the Baltimore branch of the Second Bank, refused to pay a tax that Maryland had imposed on all out-of-state chartered banks. The standoff raised two constitutional questions: Did Congress have the authority to charter a national bank? Were states allowed to tax federal property? In McCulloch v. Maryland , Chief Justice John Marshall Figure argued that Congress could create a national bank even though the Constitution did not expressly authorize it. McCulloch v. Maryland , 17 U.Champion v. AmesU. Congress under the Commerce Clause. Congress enacted the Federal Lottery Act inwhich prohibited the sending of lottery tickets across state lines.
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The appellant, Charles Champion, was indicted for shipping Paraguayan lottery tickets from Texas to California. The indictment was challenged on the grounds that the power to regulate commerce does not include the power to prohibit commerce of any item. Most important in this case was that the Ovden Court recognized that Congress' click to regulate interstate traffic is plenary. That is, the power is complete in and of itself.
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This wide discretion allowed Congress to regulate traffic as it sees fit, within Constitutional limits, even to the extent of prohibiting goods, as here. This plenary power is distinct from the aggregate-impact theories later espoused in the Shreveport line of cases. The 5—4 decision upholding the statute was authored by Justice John Marshall Harlan. This article related to the Supreme Court of the United States is a stub.
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