Unlike Ron Paul I think that the expansion of the government is Constitutional but it is contrary to the principles of limited government .As is often the case there are 2 competing thoughts on the size of government . James Madison's view was that taxation must be tied to one of the other specifically enumerated powers such as regulating commerce or providing for the military.Alexander Hamilton believed that taxation is a separately enumerated, independent power, and that Congress may tax and spend in any way that will benefit the general welfare.
The Constitution's Congressional Spending Power authorizes Congress to
"provide for the . . . general Welfare of the United States." The Constitution for the expenditures of federal funds.It allows Congress to compel states to comply with federal conditions by using the "carrot" of federal funds, and the "stick" of their withdrawal (and possible civil penalties) if a state fails to comply.The Supreme Court has upheld this Hamiltonian concept in
SOUTH DAKOTA v. DOLE, 483 U.S. 203 (1987)
Addressing Fr Chuck's comment : The 16th Amendment made collection of income taxes Constitutional .
Addressing ScotGem's point. : Yes it is likely some States like NY ,the nanny state we both live in would
fill the vaccume as you say .However to the extent that they would chose to do so ,that is their proper role in our federal system . Fr Chuck is correct that the 10th Amendment reserves much of the right that Congress usurps for the States to decide.
“ The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved for the States respectively, or to the people.
This is a question as old as the republic. Although I favor a lot of the Hamiltonian philosophy ,and I think Alexander Hamilton as one the underrated Founding Fathers , on this issue I side with the Madisonians. Congress too often imposes a one size fits all remedy that may suit the needs of New York but imposes unnecessary burdens on many other states.