why is congress prohibited from taxing exports?

Vivan Vatena

student in journalism | Posted on 10-Dec-2018

As per the export laws, which is the part of article 1 section 9 of the US Constitution, no tax, or duty can be lead or articles that are exported from any American state. The state is prohibited from doing any sort of duties on export or import, which means any article that comes in or goes out of the United States of America. This was done with the view of making the American products competitive in the global market. Addition of tax on exports would make the American products more expensive. As a result, it would appear to be less attractive in the global market, to the foreign buyers. Congress can impose local taxes in its territories, which can affect the person and the property.

For this purpose, the Congress can authorize the local territorial legislature to perform the act. However, Congress cannot impose any duties on any kind of article that is exported from the state. Congress does not possess the power to impose the tax on exports. Article 1, section 9, clause 5, clearly states that any kind of tax cannot be imposed on the items that is being exported from one state to another and it also cannot withdraw money from the treasury of United States at will.

https://fas.org/sgp/crs/misc/R42780.pdf

image: www.google.com