Debate Ignites Over Presidential Tax Authority as Think Tank Analyst Calls for Impeachment on Unilateral Hikes

Washington D.C. – A recent social media post by Alex Nowrasteh, Vice President for Economic and Social Policy Studies at the libertarian Cato Institute, has sparked discussion regarding the constitutional limits of presidential power, particularly concerning taxation. Nowrasteh asserted that "Presidents should be impeached and removed from office for unilaterally raising taxes on Americans," highlighting a long-standing debate over executive authority in fiscal matters.

The U.S. Constitution explicitly grants Congress the power "to lay and collect taxes, duties, imposts and excises," a fundamental principle ensuring that taxation originates from the legislative branch, closest to the people. However, presidents have historically exercised powers, notably through tariffs, that can function as a form of taxation. These actions are typically rooted in broad authority delegated by Congress, such as the International Emergency Economic Powers Act (IEEPA) or various trade acts, rather than inherent presidential power.

Recent administrations have utilized these delegated powers to impose tariffs, leading to legal challenges. For instance, former President Trump's "Liberation Day tariffs" faced court scrutiny, with the Court of International Trade ruling that the IEEPA did not grant the president unilateral authority to impose sweeping import taxes. New York Attorney General Letitia James, involved in one such lawsuit, stated, "The law is clear: no president has the power to single-handedly raise taxes whenever they like." While the appeals court allowed the tariffs to remain in place pending further review, these cases underscore the constitutional tension.

Impeachment, as outlined in Article II, Section 4 of the Constitution, allows for the removal of a president for "Treason, Bribery, or other high Crimes and Misdemeanors." The interpretation of "high Crimes and Misdemeanors" is broad and extends beyond criminal offenses to include abuses of power and violations of public trust. While no U.S. president has ever been impeached specifically for actions related to taxation, a presidential attempt to unilaterally impose taxes without clear congressional authorization could theoretically be framed as an abuse of power or a violation of the constitutional separation of powers.

Nowrasteh's tweet reflects a libertarian perspective that strongly advocates for limited government and strict adherence to constitutional divisions of power, particularly concerning economic policy. His statement emphasizes the view that any form of taxation should originate from Congress, aligning with the framers' intent to prevent executive overreach in fiscal policy. The debate continues as the lines between delegated executive authority and congressional prerogative remain a point of contention in American governance.