History
When George Washington asked Alexander Hamilton to defend the constitutionality of the First Bank of the United States against the protests [1] of Thomas Jefferson, James Madison, and Attorney General Edmund Randolph, Hamilton produced what has now become the doctrine of implied powers. [2] Hamilton argued that the sovereign duties of a government implied the right to use means adequate to its ends. Although the United States government was sovereign only as to certain objects, it was impossible to define all the means it should use, because it was impossible for the founders to anticipate all future exigencies. Hamilton noted that the "general welfare clause" and the "necessary and proper clause" gave elasticity to the Constitution. Hamilton won the argument and Washington signed the bank bill into law.
Another instance of the usage of implied powers was during the Louisiana Purchase, where, in 1803, the United States was offered the opportunity to purchase French territory in continental North America. James Monroe was sent by Thomas Jefferson to France to negotiate, with permission to spend up to $10 million on the port of New Orleans and parts of Florida. However, an agreement to purchase the entirety of continental French territory for $15 million was reached instead, even though this far exceeded the authorized $10 million spending cap. Despite the decision's wide popularity, it was unknown if Jefferson had the legal authority to negotiate for the territory without the approval of Congress. In the end, implied powers was offered and accepted as justification for finishing the deal. [3]
Case law
Later, directly borrowing from Hamilton, Chief Justice John Marshall invoked the implied powers of government in the United States Supreme Court case, McCulloch v. Maryland . [4] In 1816, the United States Congress passed legislation creating the Second Bank of the United States. The state of Maryland attempted to tax the bank. The state argued the United States Constitution did not explicitly grant Congress the power to establish banks. In 1819, the Court decided against the state of Maryland. Chief Justice Marshall argued that Congress had the right to establish the bank, as the Constitution grants to Congress certain implied powers beyond those explicitly stated.
In the case of the United States Government, implied powers are powers Congress exercises that the Constitution does not explicitly define, but are necessary and proper to execute the powers. The legitimacy of these Congressional powers is derived from the Taxing and Spending Clause, the Necessary and Proper Clause, and the Commerce Clause.
Implied powers are those that can reasonably be assumed to flow from express powers, [5] though not explicitly mentioned.
The Kentucky and Virginia Resolutions were political statements drafted in 1798 and 1799 in which the Kentucky and Virginia legislatures took the position that the federal Alien and Sedition Acts were unconstitutional. The resolutions argued that the states had the right and the duty to declare unconstitutional those acts of Congress that the Constitution did not authorize. In doing so, they argued for states' rights and strict construction of the Constitution. The Kentucky and Virginia Resolutions of 1798 were written secretly by Vice President Thomas Jefferson and James Madison, respectively.
Article One of the United States Constitution establishes the legislative branch of the federal government, the United States Congress. Under Article One, Congress is a bicameral legislature consisting of the House of Representatives and the Senate. Article One grants Congress various enumerated powers and the ability to pass laws "necessary and proper" to carry out those powers. Article One also establishes the procedures for passing a bill and places various limits on the powers of Congress and the states from abusing their powers.
Article Two of the United States Constitution establishes the executive branch of the federal government, which carries out and enforces federal laws. Article Two vests the power of the executive branch in the office of the president of the United States, lays out the procedures for electing and removing the president, and establishes the president's powers and responsibilities.
The President, Directors and Company of the Bank of the United States, commonly known as the First Bank of the United States, was a national bank, chartered for a term of twenty years, by the United States Congress on February 25, 1791. It followed the Bank of North America, the nation's first de facto national bank. However, neither served the functions of a modern central bank: They did not set monetary policy, regulate private banks, hold their excess reserves, or act as a lender of last resort. They were national insofar as they were allowed to have branches in multiple states and lend money to the US government. Other banks in the US were each chartered by, and only allowed to have branches in, a single state.
McCulloch v. Maryland, 17 U.S. 316 (1819), was a landmark U.S. Supreme Court decision that defined the scope of the U.S. Congress's legislative power and how it relates to the powers of American state legislatures. The dispute in McCulloch involved the legality of the national bank and a tax that the state of Maryland imposed on it. In its ruling, the Supreme Court established firstly that the "Necessary and Proper" Clause of the U.S. Constitution gives the U.S. federal government certain implied powers necessary and proper for the exercise of the powers enumerated explicitly in the Constitution, and secondly that the American federal government is supreme over the states, and so states' ability to interfere with the federal government is restricted. Since the legislature has the authority to tax and spend, the court held that it therefore has authority to establish a national bank, as being "necessary and proper" to that end.
The Necessary and Proper Clause, also known as the Elastic Clause, is a clause in Article I, Section 8 of the United States Constitution:
The Congress shall have Power... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.
Separation of powers is a political doctrine originating in the writings of Charles de Secondat, Baron de Montesquieu in The Spirit of the Laws, in which he argued for a constitutional government with three separate branches, each of which would have defined abilities to check the powers of the others. This philosophy heavily influenced the drafting of the United States Constitution, according to which the Legislative, Executive, and Judicial branches of the United States government are kept distinct in order to prevent abuse of power. The American form of separation of powers is associated with a system of checks and balances.
In the United States, federalism is the constitutional division of power between U.S. state governments and the federal government of the United States. Since the founding of the country, and particularly with the end of the American Civil War, power shifted away from the states and toward the national government. The progression of federalism includes dual, cooperative, and new federalism.
The enumerated powers of the United States Congress are the powers granted to the federal government of the United States by the United States Constitution. Most of these powers are listed in Article I, Section 8.
Federalist No. 33, written by Alexander Hamilton and first published in The Independent Journal on January 2, 1788, continues the focus on the issues in creating an efficient taxation system, along with reassuring the people's doubts about the government control over taxation. Titled "The Same Subject Continued: Concerning the General Power of Taxation", No. 33 explores the idea of allowing Congress to make all laws that are necessary for efficiently operating the national government. Under the pseudonym, Publius, John Jay, Hamilton, and James Madison collectively wrote and published eighty-five essays in the New York newspaper between 1787 and 1788 to promote the ratification of the United States Constitution.
The unitary executive theory is a normative theory of United States constitutional law which holds that the President of the United States possesses the power to control the entire federal executive branch. The doctrine is rooted in Article Two of the United States Constitution, which vests "the executive Power" of the United States in the President. Although that general principle is widely accepted among legal scholars, there is disagreement about the strength and scope of the doctrine. In 2008, Steven Calabresi and Christopher Yoo described the unitary executive theory as ensuring "the federal government will execute the law in a consistent manner and in accordance with the president’s wishes." This stands in contrast to other scholarly literature, such as MacKenzie in 2008 and Crouch, Rozell, and Sollenberger in 2020, that stresses the fact that federal employees have to faithfully execute the laws enacted according to the process prescribed in the U.S. Constitution.
The Taxing and Spending Clause, Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation. While authorizing Congress to levy taxes, this clause permits the levying of taxes for two purposes only: to pay the debts of the United States, and to provide for the common defense and general welfare of the United States. Taken together, these purposes have traditionally been held to imply and to constitute the federal government's taxing and spending power.
Dual federalism, also known as layer-cake federalism or divided sovereignty, is a political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government. Dual federalism is defined in contrast to cooperative federalism, in which federal and state governments collaborate on policy.
In United States history, the Second Report on the Public Credit, also referred to as The Report on a National Bank, was the second of four influential reports on fiscal and economic policy delivered to Congress by the first U.S. Secretary of the Treasury, Alexander Hamilton. Submitted on December 14, 1790, the report called for the establishment of a central bank with the primary purpose to expand the flow of legal tender, monetizing the national debt by issuing of federal bank notes.
D'Emden v Pedder was a significant Australian court case decided in the High Court of Australia on 26 April 1904. It directly concerned the question of whether salary receipts of federal government employees were subject to state stamp duty, but it touched on the broader issue within Australian constitutional law of the degree to which the two levels of Australian government were subject to each other's laws.
Nullification, in United States constitutional history, is a legal theory that a state has the right to nullify, or invalidate, any federal laws which they deem unconstitutional with respect to the United States Constitution. There are similar theories that any officer, jury, or individual may do the same. The theory of state nullification has never been legally upheld by federal courts, although jury nullification has.
Powers of the United States Congress are implemented by the United States Constitution, defined by rulings of the Supreme Court, and by its own efforts and by other factors such as history and custom. It is the chief legislative body of the United States. Some powers are explicitly defined by the Constitution and are called enumerated powers; others have been assumed to exist and are called implied powers.
A general welfare clause is a section that appears in many constitutions and in some charters and statutes that allows that the governing body empowered by the document to enact laws to promote the general welfare of the people, which is sometimes worded as the public welfare. In some countries, it has been used as a basis for legislation promoting the health, safety, morals, and well-being of the people governed by it.
The Supremacy Clause of the Constitution of the United States establishes that the Constitution, federal laws made pursuant to it, and treaties made under its authority, constitute the "supreme Law of the Land", and thus take priority over any conflicting state laws. It provides that state courts are bound by, and state constitutions subordinate to, the supreme law. However, federal statutes and treaties must be within the parameters of the Constitution; that is, they must be pursuant to the federal government's enumerated powers, and not violate other constitutional limits on federal power, such as the Bill of Rights—of particular interest is the Tenth Amendment to the United States Constitution, which states that the federal government has only those powers that are delegated to it by the Constitution.
