Question

Kimora, a licensed veterinarian, was recently elected to the U.S. Senate. Kimora is very concerned about the lack of care for homeless cats and dogs. She proposes legislation whereby citizens of all states are to be taxed sufficiently to provide for no-kill animal shelters, and that citizens in states with higher than average incomes are to be taxed at a higher rate than citizens of other states. She also proposes that federal funds for state highways be denied to any state that fails to provide assistance to low-income citizens in covering pet vaccinations. José, another new senator, tells Kimora that, apart from the mandated federal income tax, Congress lacks the authority to tax states because the U.S. Constitution expressly reserves that right to the states. Sven, another senator, tells Kimora that Congress has no authority to link highway funds or any other funds with social welfare objectives. Devonne, a clerk in the Senate, tells Kimora that Congress is absolutely prohibited from taxing residents of one state at a higher rate than citizens of another state.

Answer 1

Ans. 1

Option E

The statement of Sven is partially correct because the American constitution gave the authority to the congress to supervise, allocate and collect funds. The 16^th amendment extended Congress's powers in the area of tax collection and allocation of budget. US congress can pass an act and link other funds to the social welfare programs.

Ans. 2

Option B

Devonne is partially incorrect because the tax system in the US is based on the federal, state and local government when the US Congress imposes a higher tax on a particular state, it must be shown with appropriate reasons. The federal and state tax laws are quite different and federal taxes are the concern of US Congress but due to federal structure, the role of states is also very important.