July 2, 1998


Fair Taxation


Wouldn’t it be great if our personal incomes weren’t directly taxed; that the money we earn could not be directly taxed in the form of personal income taxes?

Wouldn’t it be great if we took care of (eliminated) the IRS once and for all and had a means of controlling the wild spending of our Congress?

Now, you may like and trust some of those people in Congress, but you know as well as I that their spending habits are as undisciplined as a child with his first dollar.

So, I was thinking. Why don’t we just set duties, imposts, or excises on products, services, and other salable commodities? If we did that, we could supply the financing for the day to day operations of our federal and state governments through this form of taxation. As we all know, the more one makes, the more one spends. The more one spends buying taxed goods, the more one pays in taxes in an Indirect manner.

Then, to assure that Congress acts in our best interests (responsibly) when it comes to spending, it could easily be determined at the end of the year as to what was spent verses what was brought in to support the government.

If the House overspent, then the states (not individuals) would be Directly billed based on their representation in the House.

If an extra billion was needed, then the State of Missouri (nine representatives in the House), as an example, would have to come up with 9/435ths of the billion. This could be collected by setting duties, imposts, or excises on different commodities or in the form of additional property taxes.

Thus, if we didn’t like the excess expenditures, we could choose to buy or not buy goods loaded up with duties, excises, or imposts. Simply put, if you didn’t buy the goods, your tax liability would be zero.

If done through property taxes, imagine suddenly receiving a bill for an additional X amount of property taxes due. Most people would likely raise the devil with their Congressional representative/s and assure them any additional over-spending would result in their demise as a representative.

Plus, this system would result in the members of the House from each person's state being culpable (blameworthy or guilty) for any excess spending. Thus, we would know and have a clear reason to put zealously spending members of Congress out in the next election.

Sounds like a workable plan which automatically considers income level while placing fiscal responsibility on our Congress and prohibiting the same from directly taxing household income, doesn’t it?

I must confess - I didn’t actually think of this. It is the basics of the tax system our forefathers outlined in the Constitution of the United States in Article I, Section 2, Clause 3; A1S8C1; and A1S9C4.

These provisions stood the test of the US Supreme Court in the 1916 case of Stanton Vs Baltic Mining, a decision that has never been over-turned.

The decision, you might ask. It is quite clear cut in that the 16th Amendment (1913) conferred “...no new power of taxation”.

Interesting or what?