Susan, a trained nurse, was recently elected to the U.S. Senate. Susan is very concerned about the lack of insurance for too many children and also working adults who cannot afford the insurance premiums. She proposes legislation that states are taxed sufficiently to provide health insurance coverage to children and that federal funds for state highways are denied to any state that does not also provide insurance coverage for uninsured adults. She also proposed that states with citizens earning higher than average incomes be taxed at a higher rate than other states. Bill, a senator, tells Susan that Congress lacks the authority to tax in this manner because the U.S. Constitution expressly reserves that right of the states Ellen, another senator, tells Susan that Congress has not authority to link highway funds or any other funds with social welfare objectives. Sam, an administrative assistant, tells Susan that Congress is prohibited from taxing residents of one state at a higher rate than citizens of another state. Which of the following is true regarding Bill's statement?
a. He is incorrect. The U.S. Constitution contains no such reservation
b. He is partially correct. The U.S. Constitution prohibits taxation in areas in which states also tax, but most states are not taxing for insurance purposes at this time
c. He is incorrect in saying that the U.S. Constitution expressly reserves the right to tax to the states, but he is correct in saying that Congress lacks the authority to tax in this manner because Congress cannot lay taxes for any reason other than essential needs of the federal government
d. He is incorrect in saying that the U.S. Constitution expressly reserves the right to tax to the states, but he is correct in saying that Congress lacks the authority to tax in this manner because the president has issued an executive order prohibiting such taxation
e. He is incorrect because the prohibition is contained in a federal statute passed by Congress, no in the U.S. Constitution
