The legal foundation for federal taxation is found in ______.
A) yearly power grants from each of the individual states
B) the Declaration of Independence
C) Article 1, Section 8 of the United States Constitution
D) the Congressional Budget and Impoundment Control Act, which created the Congressional Budget Office
E) the Transportation Equity Act

Question

Quizplus · Accepted Answer

Federal taxation is a specified power of Congress, contained in Article 1, Section 8 of the Constitution: The Congress shall have the Power to lay and collect Taxes . . . to . . . provide for the common Defense and general Welfare of the United States. . . . Because the Supreme Court ruled that Article 1, Section 8, did not authorize indirect taxes, like the progressive income tax, the Constitution was amended in 1913 by the Sixteenth Amendment, which permits such taxes.

The Legal Foundation for Federal Taxation Is Found in ______