Striking Down Tariffs, SCOTUS Gives Congress Permission To Be Useless
The judges let Congress off the hook, further incentivizing the legislature’s dereliction while effectively usurping power from the political branches of government.On the question of President Trump’s emergency tariffs, the Supreme Court has spoken. In the court’s view, the International Emergency Economic Powers Act does not authorize the president to impose tariffs during a declared emergency, namely, the massive trade deficits that threaten our economic security.
But the court’s decision in Learning Resources, Inc. v. Trumpwas highly fractured. Only three justices — Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson — held that the law, under normal principles of statutory construction, does not give the president authority to impose tariffs.
A tariff wears two hats. It can function as a tax, but it can also operate as an instrument of foreign policy.
Justice Brett Kavanaugh’s dissent, joined by Clarence Thomas and Samuel Alito, quite persuasively demonstrates why that is not the case. As Justice Thomas noted in his separate dissent, the power to “regulate … importation” has throughout American history “been understood to include the authority to impose duties on imports.”
The other three justices who formed the majority — Chief Justice John Roberts and Justices Neil Gorsuch and Amy Coney Barrett — resorted to the major questions doctrine. This principle of statutory interpretation holds that Congress must speak with super clarity on issues of “economic and political significance” for the Court to approve a delegation to the executive.
The turn to the major questions doctrine implies that the statute, under normal principles of statutory construction, authorizes the president’s action, a point that Justice Gorsuch explicitly conceded in his concurring opinion.
But here’s the rub. The court has never previously applied the major questions doctrine in the foreign policy arena — and for good reason. Under Article II of the Constitution, the president has the core responsibility for foreign policy. Chief Justice Roberts acknowledged as much, stating in the part of his opinion that garnered only three votes that “as a general matter, the President of course enjoys some ‘independent constitutional power[s]’ over foreign affairs ‘even without congressional authorization.'”
That’s quite an understatement. The failure to recognize the full measure of that fundamentally important piece of constitutional law is the first fatal flaw in the chief justice’s opinion.
The key Supreme Court case on this point is United States v. Curtiss-Wright Export Corp. (1936), which Roberts does not mention. In that case, Justice George Sutherland, writing for a near-unanimous court, articulated the principled distinction between foreign and domestic powers: “In this vast external realm, with its important, complicated, delicate and manifold problems, the President alone has the power to speak or listen as a representative of the nation.”
Then, quoting John Marshall’s “great argument of March 7, 1800, in the House of Representatives,” Sutherland added, “The President is the sole organ of the nation in its external relations, and its sole representative with foreign nations.”
The main issue in the case was whether Congress could delegate to the president the authority to prohibit the sale of arms to either side in a war between Bolivia and Paraguay. But Sutherland did not rely solely on the act of Congress. He wrote:
It is important to bear in mind that we are here dealing not alone with an authority vested in the President by an exertion of legislative power, but with such an authority plus the very delicate, plenary and exclusive power of the President as the sole organ of the federal government in the field of international relations — a power which does not require as a basis for its exercise an act of Congress.
In other words, President Roosevelt had the power to ban the sale of arms even without the act of Congress at issue.
The same should be true in Learning Resources, Inc. v. Trump. Thomas’ dissenting opinion convincingly demonstrates why that is the case. While the chief justice claimed that Solicitor General D. John Sauer conceded that “the President enjoys no inherent authority to impose tariffs during peacetime,” that’s not exactly what Sauer said. Rather, he argued that the statute delegated such authority to the president. Under Curtiss-Wright, a claim of inherent authority over foreign policy should still be viable.
In the part of the Curtiss-Wright opinion I elided above, Sutherland noted that the president’s power over foreign affairs, “like every other governmental power, must be exercised in subordination to the applicable provisions of the Constitution.”
For Roberts, the fact that the taxing power is vested exclusively in Congress — and that any bill “for raising revenue” must originate in the House of Representatives — further confirmed that Congress had not delegated to the president any authority to impose tariffs. The point lands a bit oddly, given Roberts’ earlier willingness to treat Obamacare as a tax even though the bill originated in the Senate.
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That move exposes the court’s second fatal flaw: a tariff wears two hats. It can function as a tax, but it can also operate as an instrument of foreign policy.
President Trump’s tariffs plainly fell into the latter category, even if they also happened to raise substantial revenue. This dual character is not unique to presidential tariffs; the Constitution itself recognizes it in a related provision. Article I, Section 10, Clause 2 provides that “No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing its inspection Laws.”
That clause reflects the same two-hat reality. An impost or duty — akin to a tariff — can be a revenue measure, but it also can serve a regulatory end tied to a state’s police power. Congress’ exclusive authority to impose taxes under Article I, Section 8, does not erase the states’ limited ability to levy duties for a different purpose: enforcing inspection laws to protect health and safety.
So too with tariffs. The fact that duties and imposts fall within Congress’ taxing power does not negate the president’s authority to use tariffs as an instrument of foreign policy — a “plenary and exclusive” power that Curtiss-Wright describes as vested in the president as the nation’s “sole organ” in external affairs.
That distinction drives Thomas’ characteristically insightful dissent. He points, in effect, to a path by which the president may continue using tariffs while negotiating with and responding to foreign nations in his role as the sole organ of American foreign policy. Time will tell whether the court, if the president takes that route, will remain faithful to its landmark Curtiss-Wright precedent. It should.
Editor’s note: A version of this article appeared originally at the American Mind.
As President Donald Trump delivers Tuesday’s State of the Union, lawmakers will applaud calls for economic strength, innovation, and American competitiveness. Many of those same politicians, however, attack the very policies that make those goals possible. Their favorite target: so-called “tax loopholes,” routinely described as corruption or favoritism.
That label distorts how tax policy works.
What critics dismiss as ‘loopholes’ often serve as the incentives that help ordinary Americans — not just the rich — build, grow, and prosper.
Politicians denounce “loopholes” as if businesses are exploiting accidental gaps in laws Congress never meant to create. The implication follows: close the loopholes, collect more revenue, spend more money, and the country improves.
That framing misses the point. Most so-called loopholes are not accidents. Congress created them on purpose to encourage behavior that strengthens the economy.
Tax credits and deductions are not tricks. They are policy tools. In many cases, they work better than direct spending programs because they rely on private-sector decision-making instead of bureaucratic discretion.
That distinction matters during a period of rapid technological change. Consider artificial intelligence.
The One Big Beautiful Bill Act passed last year built on the Tax Cuts and Jobs Act by making full and immediate capital expensing — commonly called bonus depreciation — a permanent feature of the tax code. That provision allows businesses to deduct the full cost of qualifying capital investments in the year they make them, rather than stretching deductions over many years.
Critics call that a “giveaway.” It is better understood as a growth policy.
In practical terms, full expensing matters whenever a company makes a large upfront investment — servers, advanced manufacturing equipment, or specialized hardware needed to build AI systems. Under traditional depreciation rules, a business recovers those costs slowly. That delays the tax benefit and discourages large productive investments.
Full expensing removes that penalty. It aligns the tax code with economic reality by letting businesses recover costs when they take the risk. It also works automatically, without bureaucrats deciding which firms or industries deserve support.
That design is intentional. If Congress wants more of a productive activity, it can tax it less.
The AI boom illustrates the point. The United States is competing to lead the world in private AI investment. Data centers are going up at record speed. Venture capital is funding startups that did not exist a few years ago. Large firms are racing to expand computing infrastructure for next-generation models. That kind of investment grows where policy rewards risk-taking.
By making bonus depreciation permanent, lawmakers reduced uncertainty and signaled that America intends to remain the best place to invest capital.
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This provision does not benefit only trillion-dollar corporations with armies of accountants. Any business making qualifying investments can use it: a mid-sized manufacturer installing robotics, a regional logistics company upgrading its fleet, or a startup buying high-performance computing equipment. The tax treatment is the same.
In fact, the largest long-term effect may land far from Silicon Valley. Small and medium-sized businesses make up roughly half the U.S. economy. For those firms, cash flow often determines whether they can hire, expand, or modernize. Immediate expensing can make the difference.
This is not a “loophole.” It is deliberate economic policy.
Critics often argue that provisions like full expensing “cost” the government money. That view ignores the broader effect. When businesses invest more, they produce more. More production supports hiring, wages, and taxable income across the economy.
I work directly with small and medium-sized businesses navigating a tax code that is often caricatured in political debate. I have seen how these so-called loopholes function in real life. They are not exclusive perks for the wealthy or giant corporations. Their benefits extend to workers, customers, and communities through jobs, innovation, and competition.
What critics dismiss as “loopholes” often serve as the incentives that help ordinary Americans — not just the rich — build, grow, and prosper.
Uncle Sam does not always get tax policy right. But when Congress uses the tax code to encourage productive behavior instead of punishing it, the results can be transformative.
The next time a politician thunders about “tax loopholes,” ask a simple question: Is it really a mistake — or a policy designed to make the American economy stronger?
Even as billionaires flee California to escape a potential wealth tax, proposals to raise taxes on millionaires are advancing in Washington state and Illinois.
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Massachusetts teachers’ unions are suing to block residents from being able to vote on a statewide tax cut, asking the state’s supreme court to keep it off the ballot in November.
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If you thought Virginia Democrats were “moderate” — especially Abigail Spanberger, the new governor — you might want to think again.
“They are only getting worse. And this should be remembered when it comes to the midterms. Let me just give you a few things that they are proposing. Taxes and economic policy is becoming full-fledged Marxist,” Blaze Media co-founder Glenn Beck explains, adding, “They are proposing new and expanded taxes.”
“What a surprise. They have introduced bills now that will expand the sales tax base to include services like landscaping, gym memberships, vehicle repairs, food delivery, home repairs, raising the revenue beyond the traditional goods, the progressive income tax brackets,” he continues.
But that’s not all.
“They are now proposing creating new tax brackets, higher tax brackets, meaning people with taxable income over a certain threshold, they’re saying $600,000, will pay higher rates than those with lower incomes,” Glenn explains.
“This one I really love,” he continues, reading, “Federal employee tax.”
“The federal employee will get a tax break versus everybody else. There are proposals now that will give special tax subtractions for retired federal employees and incentives for federal retirees. While you, who didn’t ever work for the government, you’ll see a broader tax increase,” he says.
They’re not only going after taxes — but guns as well.
“They’re also trying to have a mandatory waiting period on gun purchases. A ban on leaving your gun unattended in your vehicle ... also a state firearm purchaser licensing system. That sounds really good,” Glenn says.
“An 11% tax on ammunition and guns and civil liability for the gun industry participants for crimes committed using guns that they sold or built. Oh, OK, that’s really good,” he mocks.
“They’re trying to enact, you know, more DEI and ESG stuff. ... They want to expand racial bias and diversity training for professionals, nurses, real estate agents, and law enforcement. Now why does the real estate agent need diversity training?” he asks.
“Let me lay down the biggest warning I could possibly lay down, and I’m not going to dwell on it or spend time today on this. The scariest people in Nazi Germany did not wear the black uniforms. ... They were the nurses and doctors. Do not train them in any of this DEI, any of this bull crap,” he continues, adding, “It’s very dangerous.”
To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.
You won’t hear many people object to President Trump’s executive order to ban corporate purchases of residential homes. The idea sounds like common sense. But it targets a minor symptom while leaving the real disease untouched — and in some respects, it risks making that disease worse.
Institutional home-buying already peaked during the COVID-era bubble and has receded since then. In most markets, corporate ownership represents a small share of total inventory. Even at its height, it never explained why housing costs exploded for everyone else. High prices created the opportunity for institutional buyers, not the other way around.
The goal should not be cheaper debt. It should be cheaper homes.
Government policy inflated the housing market. Institutional buyers simply responded.
During COVID, the Federal Reserve pushed interest rates toward zero. Mortgage rates fell below 3%. At the same time, the Fed bought roughly $2.7 trillion in mortgage-backed securities, and HUD expanded “affordable homeownership” programs that widened the pool of subsidized buyers. Those policies produced predictable results.
When the government offers 2.5% interest for 30 years — often paired with minimal down payments backed by the FHA — buyers flood the market. Sellers respond by raising prices. The bubble becomes a feature, not a bug.
Institutional buyers entered that environment because it looked like easy money. Higher home prices also pushed rents up, so developers built more homes for long-term rental. Both trends flowed from the same source: a government-shaped market that made housing unaffordable, then subsidized the unaffordability.
Trump now seems focused on the symptom — corporate buyers — while ignoring the machinery that inflated the market in the first place.
He has spent months fighting Federal Reserve Chairman Jerome Powell to bring rates back down toward zero. Meanwhile, the Federal Reserve still holds about $2.1 trillion in mortgage-backed securities. Trump has also announced a plan for Fannie Mae and Freddie Mac to purchase another $200 billion in MBS. The stated goal is to lower mortgage rates.
But the goal should not be cheaper debt. It should be cheaper homes.

Artificially lowering rates props up prices and slows correction. Prices in many markets have begun to soften. That correction should continue. Policies designed to suppress rates will keep prices elevated and risk inflating the next bubble.
That brings us back to corporate home-buying. Even at the COVID peak, institutional buyers — defined as entities owning at least 100 single-family homes — owned about 3.1% of the housing stock. That number has since fallen to around 1%. Investors see the market turning, and they have started backing away.
So Trump’s corporate-purchase ban arrives late, targets a relatively small share of the market, and risks becoming cosmetic cover for policies that keep the bubble inflated.
If Trump wants to drive prices down and permanently realign housing with median incomes, he has to reverse the policies that inflated the bubble. That means attacking the structure, not the headline.
Get government out of the mortgage market. Trump’s next Federal Reserve chair must commit to unwinding the Fed’s mortgage-backed securities portfolio. That $2.1 trillion cushion keeps mortgage rates lower than the market would otherwise set. Those artificially low rates inflate home prices.
End universal “homeownership for everyone” policy. The federal government keeps subsidizing buyers who are not ready to buy. Those programs inject cash into housing demand that would not exist in a real market. The goal should align prices with income, not chase a utopian dream of universal ownership. After decades of subsidies, deductions, and federal credit support, the home ownership rate still sits around the mid-60% range.
Stop chasing near-zero interest rates. A 30-year loan at 2% sounds appealing until you realize what it does to prices. Cheap money bids up homes across the board. Buyers pay the price forever even as politicians brag about the “deal.” Trump should let the market set rates. Recent rate cuts have not restored normal home buying either. Sales remain weak because prices remain too high.
End the 30-year fixed mortgage. Instead of floating longer loans — 50 years? Madness! — the country should move in the opposite direction. Before the New Deal era, short-term mortgages, often three to seven years, dominated the market. Federal policy transformed that structure.
Franklin D. Roosevelt signed the National Housing Act of 1934, establishing the Federal Housing Authority. The FHA insured long-term, fully amortizing mortgages with fixed rates, low down payments, and standardized payment schedules. That system moved the market away from short-term balloon loans and laid the foundation for longer terms.
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Congress eventually authorized the 30-year mortgage in 1954. VA loans under the GI Bill and the expansion of Fannie Mae and Freddie Mac later built a secondary market that made long-term fixed-rate loans attractive to lenders.
Government insurance, guarantees, and liquidity support made 30-year fixed mortgages feasible, which is why they represent 80%-90% of U.S. mortgages today. Without those interventions, lenders would not carry that risk.
The larger point remains simple: Sellers can’t charge prices buyers can’t pay. Prices explode only when government subsidies and government-backed long-term debt expand what buyers can “afford” on paper.
Unwind the subsidies. Unwind the guarantees. Unwind the cheap-money machinery. Let incomes, not federal policy, set the ceiling.
Housing should function like other consumer markets, not be engineered by Washington. Prices should reflect what people earn.
That’s the fix. Everything else treats symptoms and pretends to solve the problem.
Abigail Spanberger had a solid two-day run. Between her swearing in on Saturday and Monday morning, the self-styled Democratic moderate was widely hailed as Virginia’s first female governor.
A member of the "Mod Squad," supposedly an antidote to the left-wing lunatics who helped doom Democrats to electoral defeat in 2024, Spanberger said she would focus on "lowering costs, keeping our communities safe, and strengthening our economy." She pledged to deliver "pragmatism over partisanship." In her inauguration speech on Saturday, she promised to "grow Virginia’s economy in every corner of the commonwealth" and "bring capital investment into every region."
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