COLUMN: Federal income tax is a mistake that can be fixed
April can be a beautiful month. It can also be a stressful one, as everyone rushes to get their taxes in by the 15th.
The current tax system is often considered to be unfair and burdensome. However, it did not start out that way, nor does it have to remain the headache it has become.
Taxation has long been an issue of tension between citizens and their government. Unfair taxation helped spark the revolution that led to our independence.
The drafters of the Constitution were well aware of the problems associated with taxation. They understood the repression that could come about with an unfair tax system. The problems faced under the Articles of Confederation also made them aware of the challenges that would arise if a tax system did not function effectively.
After much discussion, several provisions were placed in the Constitution that would create a system of taxation which would be effective, but not burdensome.
Article I, Section 7, states, “All bills for raising Revenue shall originate in the House of Representatives …” Jefferson, although not present at the constitutional convention, explained that “the people are not to be taxed but by representatives chosen immediately by themselves.”
Article I, Section 8, states, “The Congress shall have Power to lay and collect Taxes, Duties, Imposts, and Excises … but all Duties, Imposts and Excises shall be uniform throughout the United States.”
Article I, Section 9 makes the provision that “No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.”
The framers of the Constitution intended to fund the government by means of indirect taxation. However, they understood that direct taxation of citizens would be necessary under extreme situations. Madison explained, “Direct taxes will only be recurred to for great purposes … As our imports will be necessary for the expenses of government and other common exigencies …”
If it were necessary for the government to impose a direct tax on its citizens, such taxation would need to be carried out in accordance to the directions of the Constitution. Direct taxation was only to be carried out in extreme situations, particularly in times of war.
A direct income tax was taken during the Civil War. The Supreme Court held such a tax to be Constitutional. However, a direct income tax was attempted again in 1893. This time, the Supreme Court held that the income tax violated Article I, Section 9 of the Constitution, and the tax was struck down.
In the early 1900s, the income tax again became an issue in the U.S. Many liberals claimed that such a tax would “soak the rich.” Unfortunately, this socialistic mentality became popular throughout the nation.
Many attempts to create an income tax were tried in Congress. These bills were repeatedly stopped by conservatives in the Senate. This led many to accuse the Republican Party as being the “party of the rich.”
A Southern Democrat, who also opposed the income tax, decided to embarrass the Republicans by pushing another bill through Congress that would authorize an income tax. To his surprise, that bill gained a great deal of support.
Republican leaders reacted by stating they would support the creation of an income tax, as long as it was created by an amendment to the Constitution. They felt that such an amendment would pass in both the House and Senate, but that it would be killed when it went to the states for ratification. Their plan backfired, and the 17th amendment, which created the income tax, was ratified by the states. It went into effect in 1913.
The few short sentences of the 17th amendment effectively nullified Article I, Section 9. The 17th 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.”
Initially, the income tax only affected a small amount of the population. Although it was sold as a way to “soak the rich,” the wealthiest found ways to avoid paying their share of the tax.
As is the case with many other government programs, the income tax has become larger and more burdensome with the passage of time. The income tax has also given the government a great deal of access to the personal affairs of Americans.
One attempt to end this nearly 100-year-old mistake has been the “Liberty Amendment.” This amendment, among other things, calls for the elimination of unconstitutional government programs. It also provides for the end of the 17th amendment. This would put an end to the burdensome income tax.
It is time to rethink the income tax. There are other ways to finance the government that are less burdensome and intrusive.
Colby Lyons is a senior majoring in law and constitutional studies. Comments can be sent to him at c.lyons@aggiemail.usu.edu