Sunday, April 21, 2013

“It’s the Tax – Stupid!” (To paraphrase George Stephanopoulos)



Probably few are aware that “taxes” and their “imposition without representation” were at the foundation of the final decision to break away from Great Britain.

The infamous “Stamp Act” started it, followed by the Writs of Assistance and then the Townshend Acts.  All of these were designed to “extract” monies from the colonies by methods in which the colonists had no say!

It should not come as a surprise then that the Founding Fathers, when drafting the constitution, were “miserly” in their approach to finances.

Thus when it came to deciding how to “fund” the federal government, they limited the power to tax as follows:  “The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, . . . ” Art. I, Sec. 8

Sec. 9 states, “No Capitation, or other direct, Tax shall be laid, [unless in Proportion to the Census or enumeration herein before directed to be taken.]”  And, “No Tax or Duty shall be laid on Articles exported from any State.”

Sec. 10 states, “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 it’s inspection Laws . . .”

To appreciate the significance of this, you must realize that the new Federal Government (1787) had no power to “invade the privacy” of a person’s “earnings/income”.

Of course, the XVI Amendment changed all that and destroyed any restraint! “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or  enumeration.”  That is about as close to the text of the Communist Manifesto as one could imagine.  Lest our readers think we are being too harsh, it was Karl Marx who unequivocally proposed in the Communist Manifesto his second requirement, “a graduated income tax”.  As we have seen, it can be used to redistribute the wealth of the people.

For the first 100+ years of the country’s existence, the federal government stayed within the bounds of the Constitution and lived on the monies provided by “Duties, Imposts and Excises”.  It was even possible for the federal government to retire the debts of the colonies incurred during the Revolutionary War. Through sound management of budget and fiscal policies they eliminated other debts while achieving a surplus in the treasury.

How you might ask was that possible when viewed against today’s debt ridden environment?

The answer lies in two areas: 1.) strict adherence to the limited government defined in the Constitution and 2.) avoidance of all pressures to become involved in any foreign and/or imperialistic activities.  There were no “entitlements”.  The basic, inalienable rights were stated in the Declaration of Independence.  Individuals were expected to depend on themselves; self-reliance was the order of the day.

Federal monies were not to be used for any particular group, individual or organization, including the states who were to manage their own affairs in a responsible manner.  Only silver and gold coin were to be used by states in payment of their debts!  (Art. I, Sec. 10)  

Consider what this might mean if practiced today!  No federal deficit!  No bailouts!  No protected organizations or entities!  No IRS!  No wire-tapping or invasion of privacy!

In short, the freedom, as sought (and fought for) by the Founding Fathers, was for everyone to lead their own lives with an absolute minimum of government interference or involvement. 

That’s my view.  What’s yours?  Reach me at constitutionviews@gmail.com
©Copyright 2013 Hillard W. Welch