I. General Limitations (Apply to ALL laws, including tax laws): These are the basic rules
everyone must follow, even when making tax laws.
● Due Process: The government can't take your stuff (including money through taxes)
unfairly. Example: The government can't suddenly decide you owe 100 times more tax
than everyone else without a good reason and a fair process.
● Equal Protection: Everyone should be treated the same under the law. Example: The
government can't tax one store owner of a certain ethnicity more than another store owner
selling the same goods.
● Freedom of the Press: The government can't use taxes to silence newspapers or other
media. Example: The government can't impose a huge tax only on a newspaper that
criticizes it.
● Freedom of Religion: The government can't tax churches or religious activities unfairly,
and can’t favor one religion over another. Example: A law can't say that only Catholic
churches are tax-exempt.
● Eminent Domain: The government can't just take your property without paying you a fair
price. Example: If the government needs your land for a road, they must pay you what it's
worth. While taxes aren't exactly taking property, excessively high taxes could be seen as
similar.
● Non-Impairment of Contracts: The government can't change the rules of a contract after
it's already been made. Example: If you signed a contract with a company, the
government can't pass a tax law that makes that contract impossible to fulfill.
● Law-Making Process: There are specific steps that must be followed when making laws,
including tax laws. Example: Tax laws can't be passed secretly or without proper debate in
Congress.
● Presidential Power: The President can pardon people, which sometimes includes
forgiving tax penalties (but not the original tax owed). Example: If you cheated on your
taxes and were fined, the President might pardon the fine.
II. Specific Limitations (Apply DIRECTLY to tax laws): These are the specific rules for taxes.
● No Jail for Not Paying Poll Tax: You can't go to jail just for not paying a poll tax (a very old
type of tax). Example: This is mostly historical now, but it prevents the government from
jailing people simply for not paying this specific tax.
● Uniform and Equitable Taxation: Taxes should be fair and consistent. Example: People
with similar incomes should pay similar amounts of tax.
● Progressive Taxation: The more you earn, the higher the percentage you pay in taxes.
Example: Rich people pay a higher percentage of their income in taxes than poor people.
● Where Tax Bills Start: Tax bills must start in the House of Representatives. Example: The
Senate can introduce a new tax bill from scratch.
● President's Veto Power: The President can veto parts of tax bills. Example: The President
can say no to one specific tax break in a larger tax bill.
● President's Power to Set Tariffs: Congress can give the President the power to set tariffs
(taxes on imported goods). Example: The President can be given the power to change the
tax on imported cars.
● Tax Exemptions: Some things are exempt from taxes, like churches and charities (for their
religious or charitable activities), and certain educational institutions. Example: A church's
main building is usually exempt from property tax.
● Voting for Tax Exemptions: It takes a majority vote in Congress to give something a tax
exemption. Example: It’s hard to get new things tax-exempt because it requires many
votes.
