Jessica Welch
GOVT.2306.04
September 14, 2014
Interdependence of State and Federal Governments Taxation System
Federal and State government relations in the United States have ranged from cordial to adversarial over the years. The constitution differentiates the roles of both governments with clarity and vagueness in equal measure. Whereas the clarity has brought about smooth interdependence, the gray areas have often led to conflicts that at times inevitably end up in court. One such case is the South Carolina v Baker (485 US 505, 1988) in which the twin issues of federal exemption from state taxation and state exemption from federal taxation were being thrashed out.
It is important to explore the full extent of the influence of these tax regimes on the interdependent nature of state and federal government relations. Carrying out this exploration involves considering constitutional and legal applications and implications.
Constitutional Requirements …show more content…
These come with implied powers such as creating a central bank to help with the monetary responsibilities. Any other powers that are not explicitly given to the Federal government fall in the ambit of the state (Carl et al, 2009).
However, there are also overlapping powers such as borrowing money, levying taxes and chartering corporations. These areas, especially the monetary ones have been sources of conflict before in federal-state relations (Carl et al, 2009). However, the Federal government levies the bigger taxes and thus controls the biggest pie. The state governments depend on their share of this pie in addition to the limited taxes they levy at their own
GOVT.2306.04
September 14, 2014
Interdependence of State and Federal Governments Taxation System
Federal and State government relations in the United States have ranged from cordial to adversarial over the years. The constitution differentiates the roles of both governments with clarity and vagueness in equal measure. Whereas the clarity has brought about smooth interdependence, the gray areas have often led to conflicts that at times inevitably end up in court. One such case is the South Carolina v Baker (485 US 505, 1988) in which the twin issues of federal exemption from state taxation and state exemption from federal taxation were being thrashed out.
It is important to explore the full extent of the influence of these tax regimes on the interdependent nature of state and federal government relations. Carrying out this exploration involves considering constitutional and legal applications and implications.
Constitutional Requirements …show more content…
These come with implied powers such as creating a central bank to help with the monetary responsibilities. Any other powers that are not explicitly given to the Federal government fall in the ambit of the state (Carl et al, 2009).
However, there are also overlapping powers such as borrowing money, levying taxes and chartering corporations. These areas, especially the monetary ones have been sources of conflict before in federal-state relations (Carl et al, 2009). However, the Federal government levies the bigger taxes and thus controls the biggest pie. The state governments depend on their share of this pie in addition to the limited taxes they levy at their own