Chapter 5 – Constitutional Principle

Introduction to the Constitution

  • Historical Context:

    • Following the Revolutionary War, the need arose to formulate governance rules for a new nation.

    • Key Documents:

    • 1776: The Declaration of Independence was signed, guaranteeing rights to "life, liberty, and the pursuit of happiness."

    • 1787: The Constitution was signed as a structural framework for governance.

    • 1791: The Bill of Rights, comprising the first ten Amendments, was ratified.

  • Living Document:

    • The Constitution is often termed a "living and breathing document" due to its adaptability to contemporary situations.

  • Amendments:

    • Over the course of 238 years, the Constitution has been amended multiple times to reflect changing societal norms and issues.

    • There are currently 27 Amendments outlined in the Constitution.

  • Significance:

    • It governs various current issues such as job discrimination, same-sex marriage, Planned Parenthood, and transgender rights.

The Affordable Care Act (ACA)

  • Overview:

    • Enacted in 2010, the ACA aimed to reduce healthcare costs by mandating that most Americans secure "minimum essential" health insurance.

  • Individual Mandate:

    • Required individuals not covered by employer insurance or government programs to purchase their own health insurance.

    • Failure to comply resulted in a financial penalty.

  • Legal Challenges:

    • The individual mandate faced questions regarding Congress's authority under the Commerce Clause.

    • It was argued that while Congress can regulate commerce, it cannot compel participation in commerce.

  • Supreme Court Ruling:

    • The Supreme Court ruled that although the government was limiting individual inactivity (non-participation), it upheld the ACA under the Taxing Clause of the Constitution, establishing that the penalty constitutes a tax.

  • Changes in 2017:

    • Congress eliminated the individual mandate, clarifying the ACA’s implementation and enforcement.

  • Key Provisions:

    • Cannot deny coverage based on pre-existing conditions.

    • Offers preventive care provisions.

    • Insurers cannot cancel coverage when the policyholder falls ill.

    • Includes an appeals process for disputes.

Federalism

  • Definition:

    • The division of governing authority between Federal and State governments.

    • Powers not specifically granted to the Federal government are reserved for the states, as stated in the Tenth Amendment.

System of Checks and Balances

  • Purpose:

    • Ensures that power within the Federal government is distributed among three independent branches, preventing any branch from gaining excessive power.

  • Branches of Government:

    • Legislative Branch:

    • Responsible for creating laws, embodied by Congress, which includes the House of Representatives and the Senate.

    • Executive Branch:

    • Engaged in enforcing laws, led by the President, Vice President, and federal agencies.

    • Judicial Branch:

    • Interprets laws through the court system.

Commerce Clause (Article I, Section 8)

  • Overview:

    • Grants Congress the authority to regulate interstate commerce.

  • Interpretation by the Supreme Court:

    • Broadly interpreted over time to encompass various issues beyond simple trade, including:

    • Labor disputes (NLRB v. Jones & Laughlin Steel, 1937).

    • Health and safety regulations within industries (e.g., coal mines).

    • Discriminatory practices against employees with disabilities.

    • Consumer protection laws.

  • Case Examples:

    • U.S. v. Johnson (2002):

    • Defendants charged under a Federal arson statute after riots related to a racially charged police shooting, argued implicates of interstate commerce.

    • The Supreme Court ruled the link to interstate commerce was not overly distant.

    • U.S. v. Lopez (1995):

    • Challenged the constitutionality of a Federal law barring firearms in school zones.

    • The Supreme Court ruled the statute unconstitutional as it did not regulate an economic activity nor did it connect firearm possession with interstate commerce.

State vs Federal Authority

  • General Rule:

    • States exercise "police power," which allows them to protect the health and welfare of their citizens.

  • Examples of State Powers:

    • Criminal laws.

    • Building codes.

    • Regulation of medical practices.

  • Balancing Test:

    • Many legal cases involve balancing between Federal interests (commerce) and state interests (law enforcement).

Taxing and Spending Powers of the Federal Government

  • Necessity of Taxes:

    • Essential for government operations; however, taxation must be uniform and equally applied or could be deemed unconstitutional.

  • Exceptions:

    • Certain tax credits may be extended to favored industries, ignoring uniformity but promoting economic growth in selected areas.

Sales Tax and Internet Transactions

  • Supreme Court Ruling (2018):

    • Clarified how states could apply sales tax based on existing activity, termed "nexus".

    • Prior rulings mandated a physical presence (warehouse, office) for states to collect sales taxes.

  • Case Reference:

    • South Dakota v. Wayfair, Inc.:

    • Defined "nexus" as encompassing both physical and economic activity. States can now impose tax requirements even if a business lacks a physical presence in the state.