Joe Cobb

We should repeal the 16th Amendment; then the original Article I, Section 2 (census) method would automatically once again become Constitutional tax law. Federal taxation was originally supposed to be apportioned to the States by population. Different States would each use various revenue methods.

Competition among tax regimes in different States would start to occur, and the political dynamic of Federal spending would also change. Some states with less burdensome taxes would grow faster, run a fiscal surplus, and others would stagnate and run fiscal deficits. The people would learn better policy from the comparative experience.

With all Federal money coming only from State legislatures, the “gravy train” of money from Washington would no longer seem to be “found money.” Local and State governments would immediately have to start collecting the full cargo of Federal revenue — proportionate to each State’s population (not based on its prosperity or wealth). States would not be taxed more for being more successful economically.

Local legislators would pressure their U.S. Representatives and Senators for lower Federal taxes, not for more earmarked pork projects, because all Federal money would have to be raised locally by State legislators. Local politicians would probably not support for promotion to Congress any members of their own party who were big spending tax increasers — in contrast to how it works today.

This is a truly revolutionary proposal! We normally think of the Federal income tax as a fiscal policy tool, mostly affecting the economy, but more importantly it has changed the entire structure of federalism in our political system. Restoring federalism is almost as important as getting rid of the I.R.S.

Joe Cobb
Glendale, Arizona
2006