Tuesday, June 25, 2013

Taxation Expenditure Scheme

Passage of the 16th Amendment to the Constitution in March of 1913 launched the income tax program we now have.  It started small but over time grew to the intrusive and expansive program it now is.  With Constitutional constraints on taxation lifted the federal government was given free rein over tax policy, a profound violation of the Founder's intent.  Two of many outcomes were:  (1)  It gave the federal government the ability to forceably collect income taxes; and, (2) it enabled the federal government to redistribute/spend those collected funds as it chooses.  Hence, the many programs that now take taxpayer funds and, without our consent, spend them as it pleases.  One of the ways they are spent is by redistributing them to the states in accordance with its own rules, often as a means of bribing states into taking actions they would otherwise not do.  An outcome of this federal power is that those in power get to spend money collected from residents in one state and redistribute them for the benefit of residents in another state. For a look at the current redistribution scheme to the states see this link.  http://taxfoundation.org/blog/monday-map-federal-aid-percentage-state-general-revenue


George Burns

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