Taxing power is a government’s ability to implement and collect taxes from individuals and businesses.
General Constitutional Authorization
Article I, Section 8 of the U.S Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States…” This is also referred to as the "Taxing and Spending Clause," or Congressional spending power, to use tax income to fund American necessities, like welfare aid or security/military funding.
Income Taxes
Under the Sixteenth Amendment, Congress has the taxing power to collect income taxes.
The Internal Revenue Code (IRC) is the main law governing income taxes. The IRC codified as Title 26 of the United States Code and contains federal statutes regulating tax laws.
States
States are also allowed to impose and collect their own taxes, which is included but not limited to income taxes, sales taxes, and property taxes, all of which vary based on the individual state’s tax statutes.
Further Reading
For more on the taxing power, see this Arizona State Law Journal article and this Notre Dame Law Review article.
[Last updated in June of 2024 by the Wex Definitions Team]