01-17-2023, 08:46 AM
t have previously explained that this so-called "balanced budget" amendment would do no such thing. Section 4 allows Congress to set a date in the future by which the States are to pay their shares of the direct tax, thereby allowing Congress to do what it always does -- kick the can down the road and end up with a deficit. Even if every state comes up with their share of the tax, the discount will obviously result in a deficit.
As a practical matter, however, it will nor be possible for all of the States to come up with their shares of the direct tax in the same fiscal year that Congress imposes it. Some legislatures don't meet annually, and it's a delusion to think that a State could decide how to raise its share of the tax and actually collect it in one year.
The Founders' original tax plan was to give Congress the discretion to determine when and what to tax. There were only three restrictions on the taxing power spelled out in the original Constitution: direct taxes must be apportioned, duties, imposts, and excises must be geographically uniform, and Congress can't tax exports. The Supreme Court has added a fourth: Congress can't tax certain functions of a state or local government (this is the intergovernmental tax immunity doctrine that is based upon the federalism structure under the Constitution). That's it. Given that 6 of the original 13 colonies had had some form of income tax it's absurd to think that the taxing power given to Congress in the Constitution wasn't broad enough to cover income taxes.
Finally, the idea that the "original tax plan" didn't include the power to tax inheritances is nonsense, given that the first federal inheritance tax was imposed in 1797.
See http://www.ronpaulforums.com/showthread.php?516880-President-Trump-gives-up-on-tax-reform-and-embraces-income-tax-manipulation/page2&highlight=johnwk
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