Is a ‘debt limit’ constitutional?
Article 1 - The Legislative Branch, Section 8 - Powers of Congress
usconstitution.net
Excerpt:
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To borrow money on the credit of the United States.
14th Amendment:
Section 4 of the 14th Amendment to the U.S. Constitution states that the validity of the public debt, authorized by law, shall not be questioned.
Public Debt Acts:
The First and Second Liberty Loan Acts were each enacted in 1917 during World War, These acts established different public debt limits for bonds, bills, certificates, and notes, and provided for full federal tax exemption for the interest on U.S. government obligations .
The initial Public Debt Act was passed in 1939, but it was the Public Debt Act of 1941 that fully set the modern stage for government debt finance. This 1941 Act not only raised the debt limit, it also eliminated the federal income tax exemption for future issues of U.S. debt, and consolidated virtually all federal borrowing into a unitary system run through the Department of the Treasury.
DISCUSSION:
It appears that the Public Debt Acts are in contravention to the specificities of Article 1, Section 8 and Section 4 of the 14th Amendment, and were, basically ‘curb appeal’ efforts, i.e., any limitation of debt incurred and payment thereof may be unconstitutional.
Based upon Section 4 of the 14th Amendment, anyone who purposes actions or votes in opposition of that Section may be in violation of his or her Oath of Office.
The solution to minimizing U.S. debt would be a combination of legislating appropriate expenditures, equitably raising additional revenue, and passing legislation that would promote healthy and equitable economics.
CONCLUSION:
There is no reason to raise a ‘debt limit’, since it appears that a ‘debt limitation’ is unconstitutional. There is no reason or authority for the President to issue an executive order under Section 4 of the 14th Amendment, what is, is.
mz
July 28, 2011
