Earmarked Funds

Earmarked Funds (Scope of Power to Tax)

The appropriation of the proceeds of a tax to a specific use does not affect the validity of the exaction, if the general welfare is advanced and no other constitutional provision is violated. Thus a processing tax on coconut oil was sustained despite the fact that the tax collected upon oil of Philippine production was segregated and paid into the Philippine Treasury.1 In Helvering v. Davis,2 the excise tax on employers&emdash;the proceeds of which were not earmarked in any way, although intended to provide funds for payments to retired workers&emdash;was upheld under the “general welfare” clause, the Tenth Amendment's being found inapplicable.

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References

This text about Earmarked Funds is based on “The Constitution of the United States of America: Analysis and Interpretation”, published by the U.S. Government Printing Office.

[Footnote 1] Cincinnati Soap Co. v. United States, 301 U.S. 308 (1937).

[Footnote 2] 301 U.S. 619 (1937).

Tables of Contents

• Earmarked Funds and other Topics in the Contents – Article 1 of the U.S. Constitution
• U.S. Constitutional Law Category
• List of amendments to the U.S. Constitution
• Earmarked Funds and other Topics in the Constitution Contents
• Interpretation of the U.S. Constitution (Table of Contents)
• Clauses of the Constitution (Table of Contents)