TURBO Act

The Congress possesses the plenary power to lay and collect taxes for the general welfare, and the regulation of tax exemptions for bonds is a direct exercise of that power. Amending the Internal Revenue Code to modify rules for exempt facility bonds merely adjusts the conditions under which Congress permits certain interest to escape federal taxation. This is not a command to the States, but a limitation on a federal subsidy, and is therefore within the legislative authority. The Necessary and Proper Clause reinforces the choice of means to execute the taxing power, and Federalist No. 33 ackn…

The power to lay and collect taxes is expressly granted to Congress by Article I, Section 8, Clause 1, and the Sixteenth Amendment further empowers the taxation of incomes. Thus, amending the Internal Revenue Code falls within the federal taxing authority. However, the Tenth Amendment reserves to the States all powers not delegated to the United States. While Congress may use its taxing power to encourage or discourage certain activities, modifying rules for exempt facility bonds—which are instruments of state and local borrowing—must not be used as a subterfuge to regulate matters reserved to…

This bill falls squarely within Congress's enumerated power to lay and collect taxes, as granted by Article I, Section 8, Clause 1. The modification of rules for exempt facility bonds is an exercise of the taxing power, which includes the authority to define the terms and conditions of tax exemptions. The Necessary and Proper Clause (Article I, Section 8, Clause 18) further supports Congress's discretion in implementing the tax code. There is no encroachment upon state sovereignty, as the bill does not commandeer state governments or regulate state activities directly; it merely adjusts federa…

This bill proposes amendments to the Internal Revenue Code concerning exempt facility bonds, which are a form of borrowing by state and local governments for specific purposes. The Constitution grants Congress the power to lay and collect taxes, duties, imposts, and excises, and to provide for the general welfare (Article I, Section 8, Clause 1). The regulation of tax-exempt bonds falls within this taxing power, as it directly concerns the conditions under which interest on such bonds is exempt from federal taxation. Furthermore, the necessary and proper clause (Article I, Section 8, Clause 18…