Mr Khan said:
The fed is in part allowed by the 16th amendment, i thought. I know the Federal Reserve came in around the time of the Income Tax, so i always assumed they shared the same constitutional basis, though i could be wrong. |
My understanding is that Fed's constitutionality lies in the combination of coinage clause (congres can print money) the elastic clause (congress can make any laws that it deems necessary to carryout its powers) and the commerce clause (congress can regulate interstate commerce, in this case, the banking industry)
As an aside, I remember reading a case about corn regulation. There was a law that regulated corn use and production on farms, even if the corn was ONLY used on the farm on which it was grown (eg for feed.) The federal government claimed commerce clause powers, but obviously the private use of the corn is NOT interstate commerce. The Supreme Court ruled that even if the corn was for private use, the growth and use could potentially impact the interstate corn market and therefore congress could regulate that growth without the need to show it even was impacting the interstate corn market.
This ruling basically allows for congress to regulate any and all activity, as any activity could potentially impact some interstate market.
It was also more recently used to allow the DEA to arrest a woman who was growing marijuana for personal use, claiming her growth could impact the interstate marijuana market. Obsurd.
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