Only Congress can make tax laws, according to the Constitution. The power to tax is specifically given to Congress in Article I, Section 8. This power is known as the Taxing and Spending Clause.
The Taxing and Spending Clause gives Congress the authority to imposition taxes, duties, imposts, and excises (among other things). This clauses also allows Congress to spending money on “the general welfare of the United States.” So, while states have their own taxes and spending powers, it is ultimately up to Congress to set tax policy for the nation as a whole.
There are a few key things to keep in mind when thinking about who has the power to make tax laws. First, only Congress