Taxation is the most powerful weapon the State has against its own people. The power to tax is the power to destroy and unlimited taxation power is the ability to control and destroy in an unlimited fashion. The constitutions biggest shortcoming as originally constituted, in my opinion, is that it didn’t more explicitly forbid certain types of taxation in the United States. It does say, in some confusion language, that direct taxation is not ok, and until 1913 a direct income tax was forbidden and required an amendment. So, without further discussion, here is my #1 amendment I say is needed to the constitution.
The Limitation of Taxation Amendment
Section 1: Revoke the 16th Amendment
The 16th Amendment states: “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.”
The 16th amendment should be made void removing the authority of congress to tax incomes.
Section 2: General or Uniform, and Flat Taxation
All taxes levied by congress should be a single percentage voted on by a two third majority of the House of Representatives and ratified by a majority vote in the Senate. This single percentage rate should apply uniformly to all that fall within the parameters of the tax. Congress may not make a tax progressive, with exceptions, with regional or local distinctions or as a specific penalty to individuals or organizations.
Section 3: Restricted of Taxation
Congress and all member states and localities within the United States of America shall not be authorized to levy:
Direct Taxation including Income, Earnings, or Increase Taxation
This is the singling out or targeting of a person, organization, religion or company for specialized taxation with wealth duly earned from services rendered in any sector of the economy. This includes wages, salaries, commissions, bonus’, and other forms of rewards for services. This also includes earnings that are invested back into the economy and any gains they may make are all free from taxation.
A persons wealth is the sum total of all their belongings. The wealth of an individual may not be assessed by the state and may not be taxed by the state.
Specifically referring to real estate, property owned by individuals is considered their own and may not be touched by the state.
Estate or Inheritance Taxation (Death Tax)
Propert passed onto posterity in any form whether alive or dead may not be taxed. This is not considered an arms length transaction and therefore if passed on in a trust, or after death as inheritance, is free from any form of taxation.
Section 4: Constitutional Taxation
All governments shall be authorized by this constitution to levy the following taxes in a universal and general manner:
Tiers of State Tax:
This form of taxation allows the top tier of government to tax the second tier and the second the third. In other words the federal government may levy a percent of annual revenues tax on the states and the states on the counties and municipalities.
A consumption tax is a percentage of final sales price for the arms length transaction of finished goods reserved for the states and local governments. Services may not be taxed and commodities are taxed as part of a federal excise tax.
Intrastate Commerce Tax:
The States may tax intrastate commerce as a percentage of gross revenues. Local governments may levy an annual business privilege tax.
Interstate Commerce Tax:
An interstate commerce tax is reserved to the Federal Government which may tax a percentage of gross revenues of all commerce from a company that crosses state lines.
The federal government lay a exercise on the arms length transactions of commodities as a price per specified unit general to all who sale that commoditity.
Import or a Tariff Tax:
Congress may lay a general and uniform tax on goods and commodities that are imported from nations abroad.
Pigouvian Environmental Tax:
All tiers of government may lay a price per part per million on the environmental emission or waste of specifically determined contaminates from the atomic level to the substrate level including expulsion of gases, liquids, plasma’s and in specific cases solids.